Crypto analyst RLinda has warned about an imminent Dogecoin price crash. She highlighted the panic zone at around $0.214 and explained why this zone could spark a wave of massive sell-offs for DOGE.
Dogecoin Price Risks Dropping Below $0.2 As DOGE Retests Panic Zone
In a TradingView post, RLinda predicted that the Dogecoin price could drop below $0.2 as it retests the panic zone. She noted that when support is broken, buyers will be liquidated, and sellers may increase sales, which could trigger this bearish momentum for the foremost meme coin.
The crypto analyst revealed that the Dogecoin price is already facing selling pressure. She noted that price enters a correction phase after a rally and storms the panic zone, with a potential breakdown intensifying an uncontrolled decline. In this case, DOGE’s recent rally ended at the $0.2600 zone, after which the meme coin has been correcting since.
This Dogecoin price correction has brought the meme coin to this panic zone, which puts it at risk of a further drop below $0.2. RLinda outlined $0.222 and $0.2307 as the resistance levels and $0.2145 and $0.2135 as the resistance levels to watch out for as DOGE trades around this zone.
She stated that the main idea is a continuation of the decline and that the trigger is a breakdown of support at $0.2135 and consolidation of the price below this zone. The analyst affirmed that the meme coin would only continue to fall if this plays out.
However, this bearish setup could be invalidated if the Dogecoin price reverses and consolidates above $0.222. A price consolidation above $0.23 would confirm the bullish sentiment, supporting the case for further rallies to the upside.
DOGE To Rally As Bitcoin Does
In response to RLinda’s analysis, crypto analyst Master Ananda stated that the Dogecoin price would continue to rally to the upside because of Bitcoin, which the analyst predicts would also go up. Master Ananda added that BTC is set to hit a new all-time high and that altcoins like DOGE are on a path to massive growth.
RLinda replied and explained that the Bitcoin price was showing signs of a decline in the short term, which was part of the reason she expected the Dogecoin price to crash. She noted that BTC was testing $102,500 for the fifth time as support and that the rebound reaction became weaker with each support test. The analyst added that there were additional prerequisites for a possible decline to $101,000.
At the time of writing, the Dogecoin price is trading at around $0.21, down almost 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
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