Из жизни альткоинов

Meme cryptocurrency Dogecoin has had quite a few days of intriguing price action coupled with intense volatility. Notably, Dogecoin, which ended the last days of September on a bullish run, has since reversed those gains and is back where it left off just above $0.10. 

According to a technical analysis of the Dogecoin price action, the meme coin broke above a multi-month downtrend last week. However, as it stands, a recent correction in the past 48 hours has seen DOGE reversing to retest the breakout point. As noted by a crypto analyst, this retest is crucial to DOGE’s performance in the coming weeks and months. A bounce or a break below could make or break the meme coin’s price.

A crypto analyst known as Kevin on social media platform X, recently made known an interesting piece on the current DOGE price action. Kevin has built a reputation among his social media followers for his extensive analysis of DOGE price action on X. According to a Dogecoin chart he shared, the meme coin, which recently peaked above $0.13, is now retesting the upper trendline of the multi-month falling wedge that it successfully broke out of just last week.

According to Kevin, this type of retest is actually normal when breakouts like this play out. A retest and a subsequent move to the upside often act as confirmation of the breakout. However, with the current situation of things, this retest could be more than just a retest. This is because a break below the trendline would mean that the meme coin is still stuck in a multi-month downtrend and has not broken out as most investors had hoped. This, in turn, could cascade into a decline that could eventually see DOGE reaching a low of $0.085 in the coming weeks or even create a lower low below that level. 

#Dogecoin is currently back testing the macro falling wedge it broke out of a week ago which is technically a bullish back test and should occur when these patterns play out. If #DOGE loses this area then big trouble awaits. We need to hold this zone for this 6 month pattern to… pic.twitter.com/kYTWuQTwNH

— Kevin (@Kev_Capital_TA) October 1, 2024

Consequently, the $0.11 to the $0.108 zone is a crucial zone for Dogecoin bulls to hold on to. In the words of crypto analyst Kevin, Dogecoin needs “to hold this zone for this 6-month pattern to not fail.”

At the time of writing, Dogecoin is trading at $0.1085 and is down by 8.5% in the past 24 hours. If bulls are able to maintain the price above this key zone in the next few days, it would reinforce the validity of the recent breakout and potentially pave the way for further upside in the coming weeks. 

Dogecoin’s price decline in the past 24 hours isn’t an isolated move and is part of a wider decline among many cryptocurrencies. The hype leading up to October (Uptober) has degraded into a decline in the price of cryptocurrencies on the first day of the month.

Bitcoin fell more than 6% early on Tuesday as a result of Iran’s missile attack on Israel, which intensified tensions in the Middle East. As soon as the market for cryptocurrencies opened up, Bitcoin dropped to its present level, a little below $61,000.

Bitcoin had already fallen from about $62,200 earlier in the day, which contributed significantly to a phenomenon: volatility that sparked dissatisfaction around the world. Fearing what this war might bring, investors rushed away from the riskier assets like Bitcoin and sought traditional safe havens in gold.

Military strife wasn’t the only thing that happened during the missile strikes; they also shook the financial markets. As tensions rose, the US government revealed that President Joe Biden had ordered military aid for Israel.

Investors are now even more worried about the effects of this intervention on global security and the possibility of a worsening of the situation. As news feeds were filled with stories of missile launches, Bitcoin’s value dropped by about $3,800 in just a few hours. It fell for a short time to around $60,200, but later in the day it slowly climbed to around $61,500.

It was a bearish October, also the so-called “Uptober” for its historical gains in the past, and this is what the traders were hoping for, but chaos dashed that dream. Big liquidations on huge cryptocurrencies made the selloff even worse.

Positions in Bitcoin and Ethereum alone lost over $481 million. In the past, geopolitical situations have caused sharp drops in crypto values, which shows how sensitive Bitcoin is to events happening around the world.

Curiously, as Bitcoin was losing out, gold prices surged 1.2% to touch near record-highs as uncertainty-fearing investors sought safety. In reality, this is not a new pattern that one has seen before. People have seen this pattern in the Russia-Ukraine tensions and the brewing tensions between the US and China.

Traditionally, Bitcoins have rallied well after initial declines on global tumult. But there are still traders who want to hedge the price and rush to decrease their investments, causing the price to go down.

The way things are now makes many wonder where Bitcoin and other cryptocurrencies will go in the future. Analysts believe Bitcoin might test the $60,000 support – or lower – if things worsen.

Featured image from The Times of Israel, chart from TradingView