Dogecoin (DOGE) could soon experience a significant price drop. A recent analysis shows that bitcoin Price is on the verge of a price correction, which will also lead to a bearish trend for the top meme coin.
Dogecoin will fall along with bitcoin
Dogecoin is poised to fall along with bitcoin if the latter eventually suffers the massive price correction that Cryptocurrency analyst Ali Martinez It was recently predicted that the flagship cryptocurrency could witness On an x (formerly twitter) x.com/ali_charts/status/1831231909898449130″ rel=”nofollow” target=”_blank”>mailMartinez mentioned that on the 2-month chart of bitcoin, the TD Sequential indicator had presented a sell signal in anticipation of a price correction.
The cryptocurrency analyst further stated that bitcoin could fall to $40,600 if the cryptocurrency fails to hold the $51,000 support level. This anticipated bitcoin price drop is also expected to trigger a crash in the Dogecoin price due to the price correlation between the two crypto assets. Data from IntoTheBlock Market Intelligence Platform shows that Dogecoin’s price correlation with bitcoin is 0.9, indicating a strong positive price correlation.
Related Reading: Dogecoin forms a 'second low' that could trigger a 4,000% rally above $4
bitcoin, as a leading cryptocurrency, is also known to have a massive impact on the overall cryptocurrency market. As such, a price drop certainly translates into downward pressure for DOGE. It is worth mentioning that Dogecoin was one of the coins that suffered the biggest price drop after bitcoin crash on August 5th when the flagship cryptocurrency fell below $50,000.
Meanwhile, bitcoin is likely to crash due to the flagship cryptocurrency's historical tendency to post losses mostly in September. Apart from Martinez, other cryptocurrency analysts such as CryptoQuant's head of research Julio Moreno have also bitcoin/bitcoin-2019-below-60000/” rel=”nofollow noopener” target=”_blank”>provided that bitcoin could suffer a significant price drop this month.
September has not been the best month for DOGE either. Data According to CryptoRank, the leading meme coin has suffered monthly losses in all but three Septembers since 2014. The last time Dogecoin closed September with gains was in 2021.
On-chain metrics paint a mixed picture for DOGE price
On-chain metrics Currently, a mixed picture is being painted for Dogecoin, with some bullish and others bearish. There has been an increase in large Dogecoin transactions, suggesting that crypto whales are accumulating heavily at the moment. The imbalance between supply and demand volume is also bullish for Dogecoin.
On the other hand, the number of DOGE Addresses Money is dwindling due to the bearish price action of the meme coin, especially with DOGE still below the crucial support level of $0.10. Meanwhile, DOGE Adoption has remained stagnant, indicating a lack of interest in the meme coin among new investors.
At the time of writing, Dogecoin is trading at around $0.09, up more than 1% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
