Dogecoin is one of several cryptocurrency assets that are down in price this week, signaling a bearish market overall. The asset is down under ten cents today, trading at $0.0973. DOGE has been one of the most affected tokens amid the widespread downtrend in the crypto and stock markets. The meme coin has dropped to levels not seen since February earlier this year, and experts are looking for a way to rescue the asset. Unfortunately, further losses are predicted.
A crypto analyst predicts Dogecoin could dip below 7 cents before potentially surging to fulfill its $1 goal. CryptoKaleo shared their bearish opinion on X, signaling a further downturn around DOGE. “Finally got the break back beneath ten cents,” the account posted. “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+.”
One of the biggest contributors to Dogecoin’s recent dip is its strong correlation with Bitcoin. Like many meme coins and other crypto assets, DOGE follows BTC as the latter climbs or drops. Bitcoin is the overall leader in crypto by a wide margin, sporting the largest market cap in the entire sphere. Data from the market intelligence platform IntoTheBlock shows that Dgecoin’s price correlation with Bitcoin is currently at 0.95. This is almost the peak of a strong positive price correlation that any asset can have with the leading crypto. While BTC has rebounded slightly to 56,737.90, the entire crypto market is still in disarray.
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Furthermore, the US economy has also affected the prices of various cryptocurrencies including Dogecoin. The Fed has yet to decide on an upcoming interest rate cut despite improvements in inflation. This defies projections by crypto experts who were looking for a positive correlation between dropping rates and a bullish market. The July jobs report also suggested that the US economy might be in a worse state than many imagine, with unemployment soaring to 4.3%. Even the stock market is facing considerable losses, with more than $2 trillion being wiped out of the US stock market in the first hour of trading today.
These factors indicate that the economy continues to struggle, much to the disadvantage of the crypto market. Dogecoin has plenty of catalysts for its ongoing decline, and there aren’t many indicators of a rebound incoming. Thus, it is possible that CryptoKaleo’s price prediction rings true, and the asset may continue its rough tumble below $0.80.