thenewscrypto.com
- Dogecoin (DOGE) has dropped from a peak of $0.1018 to $0.09434, reflecting a 17% decline.
- September has historically been tough for Dogecoin, with consistent price declines every year.
As the crypto market encounters a correction, Dogecoin (DOGE) has also displayed a significant drawdown, erasing recent gains. After reaching a peak of $0.1018 on August 30, following a favorable court ruling for Elon Musk and Tesla, DOGE has struggled to maintain its gains.
The court found Musk’s tweets about Dogecoin to be optimistic rather than misleading, which initially buoyed the price. However, the enthusiasm was short-lived as DOGE followed the decline seen in Bitcoin, which fell to the $57K zone.
In the past 24 hours, DOGE’s value has fallen by over 6%, dipping from $0.1004 to a low of $0.09417. Over the past week, the coin has lost more than 14% of its value, and the monthly trend is similarly negative with a drop of about 20%.
Further, data from Lookonchain reveals that the top ten meme coins have seen an average decline of 63.73% from their peak values over the past year. Dogecoin itself has seen a 57.93% drop, while BOME coin has faced even steeper losses of 79.48%.
Additionally, over $173 million worth of assets were liquidated in the past day, with Dogecoin accounting for $2.47 million of this total.
September Trends and Market Sentiment for Dogecoin
Historical trends suggest that Dogecoin may face continued downward pressure. As September begins, the memecoin has already fallen nearly 17% from its recent high of $0.113, recorded on August 25. Historically, September has been a challenging month for Dogecoin, with past performance indicating a tendency for price declines.
Moreover, the monthly candlestick chart for DOGE shows minimal activity for DOGE in September, typically dominated by sellers. Additionally, large holders or whales have reduced their positions, which often signals bearish market sentiment. These large traders can significantly influence market movements, and their reduced activity often aligns with price declines.
In that case, this year may follow a similar trend, as Dogecoin enters September with visible weakness.
According to the Dogecoin price prediction, a bearish setup known as the “descending triangle pattern” suggests further declines. This pattern, characterized by a declining upper trendline and a flat lower trendline, indicates increasing selling pressure. If the descending triangle pattern continues to play out, DOGE could drop to $0.072 or even as low as $0.04578, marking a severe dip.
Despite these bearish signals, there are a few factors that could alter the negative trend. Elon Musk’s recent legal victory related to Dogecoin could have a positive impact on the token.
If that happens and it manages key resistance levels above $0.11402, DOGE could see a rally, potentially reaching $0.11876 or even $0.20726. However, the prevailing sentiment remains cautious as the market grapples with broader uncertainties.