Dogecoin Faces a Turbulent Period: Price Volatility and Future Prospects

In recent weeks, the altcoin market in general, including the largest memecoin Dogecoin, has been under bearish pressure. This bearish pressure has brought the entire crypto market down to 3.25 trillion dollars as of June 19, reflecting a decrease of 0.66%. The price of Dogecoin alone has dropped over 25% in the past four weeks, trading around 0.167 dollars at the time of writing. With a fully diluted market cap of nearly 25 billion dollars since the beginning of the year, Dogecoin, like the rest of the altcoin market, finds itself stuck in a downtrend. The main factors affecting the medium-term outlook of Dogecoin Dogecoin, protected by the proof-of-work consensus mechanism (PoW), has attracted more institutional investors over the past year. In the United States, some fund managers have filed with the SEC to seek approval for a spot Dogecoin ETF, awaiting a decision. Participants in the Polymarket estimate the likelihood of the SEC approving a spot Dogecoin ETF before the end of the year at 67%. This development is seen as a potential key factor that could support Dogecoin in the medium term. Short-term expectations for Dogecoin price Since the beginning of 2024, the price of Dogecoin has moved within an overall bullish channel characterized by higher highs and lower lows. However, the largest memecoin has remained entrenched in a notable bearish trend since the beginning of the year.

On the weekly timeframe, the price of DOGE seems to be attempting to retest the gradually increasing logarithmic trend line from last year. After a recent encounter with strong resistance at around $0.25 and the subsequent pullback, the memecoin faces the possibility of a 30% decline to its support level at around $0.11. This short-term bearish scenario is further supported by the weekly MACD signal line heading down and increasing bearish histogram bars. However, the current short-term bearish pressure on DOGE's price could be invalidated if the memecoin continuously breaks the descending logarithmic trend line established since the beginning of the year.