Dogecoin: Expert predicts drop below 7 cents – Is a $1 surge still likely?

• Crypto analyst predicts Dogecoin could dip below 7 cents before potentially surging to fulfill a $1.00 prophecy.
• Despite bearish trends, large Dogecoin holders show confidence, signaling a possible trend reversal above $0.105 support.

Dogecoin [DOGE] has recently experienced considerable volatility, mirroring the broader instability across crypto markets.

Crypto analyst CryptoKaleo has predicted a significant drop to below 7 cents, raising concerns among investors and traders.

CryptoKaleo shared on X: 

“Finally got the break back beneath ten cents. Price is currently hanging around support from the lows we saw last month. Still see there being a decent chance we get one last flush to sub 7 cents from here. After that – no more pain. Just a few months of chop before full send to fulfill the prophecy of $1.00+.”

As of press time, the price of Dogecoin stands at $0.082, marking a 23.91% decline in the last 24 hours and a 38.86% decrease over the past week.

With a circulating supply of 150 billion DOGE, the market capitalization is valued at approximately $11.96 billion.

DOGE indicators reflect bearish momentum

The price trend of Dogecoin has been below the middle Bollinger Band, indicating a bearish momentum. The widening of Bollinger Bands typically suggests increased volatility. 

The Chaikin Money Flow (CMF) was at -0.19, signifying selling pressure and capital outflow from DOGE. This negative CMF value reinforces the bearish sentiment as it indicates money is leaving the asset.

Additionally, the Relative Strength Index (RSI) was at 30.53, nearing the oversold threshold of 30. This could signal potential short-term reversal or consolidation. 

However, considering the overall bearish context highlighted by other indicators, the RSI alone should not be the sole indicator for buying decisions.

Decreased network activity

Meanwhile, there has been a sharp decline in active addresses, now around 47.3K, down from peaks exceeding 345K. Transaction counts have shown sporadic spikes but generally follow a downward trend, currently at 204K. 

This decline points to reduced network activity and user engagement with DOGE.

Despite the bearish indicators, an AMBcrypto report indicates that large holders’ outflow has decreased from a high of 192 million to 42 million.

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This suggests that large Dogecoin holders are not selling their assets, implying confidence in a potential trend reversal.

If Dogecoin closes above the critical support level at $0.105 on daily charts, it may reverse the trend and attempt to challenge the $0.13 resistance level.