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As the cryptocurrency market collapses under the pressure of escalating war tensions, the price of Dogecoin was not spared. Over the weekend, this meme coin dropped by more than 5%, breaking below the critical $0.16 mark, seemingly in a free fall. This naturally triggered investor panic, leading to further market sell-offs. At this juncture, a cryptocurrency analyst revealed the best time to buy Dogecoin.
When is the Best Time to Buy Dogecoin?
Dogecoin's price has fallen to around $0.15 and continues to decline after the market crash. Nevertheless, an anonymous cryptocurrency analyst on TradingView suggests that now is still not the time to buy. The reason behind this is that Dogecoin's price still has a long way to go before the downtrend ends.
The cryptocurrency analyst still predicts that Dogecoin's price will further drop by 10%, ultimately falling to the $0.13 level. The analyst explains that investors should first wait for the digital asset to truly approach this target zone. The reason behind this is that the range support and weekly support have consistently aligned, providing a strong convergence area for potential entry points.
Due to this pattern, the buy-in price for Dogecoin is around $0.13. Moreover, since support is formed at this level and significant liquidity is expected to flow in, Dogecoin's price may see a substantial rebound from this buy zone.
As the analyst pointed out, Dogecoin's price could potentially rise nearly twofold from the buy zone. The target price of $0.25 means that its price will increase by over 90% by the third quarter of this year, with investors once again reaping returns.
Declining Trading Volume Supports Further Decline
As the price steadily drops, Dogecoin's daily trading volume has also continued to decline. Based on historical performance from the Coinglass platform, this supports the expectation that Dogecoin's price will continue to fall.
In June, Dogecoin's daily trading volume significantly dropped from a high of $5.1 billion to an average below $3 billion. If the market continues to decline, Dogecoin's daily trading volume is likely to fall below $2 billion by the end of the month and may inadvertently drop back to $0.13.
