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Is Dogecoin doomed? There is a massive head and shoulder pattern forming right now on the DOGE/USD crypto pair on Bybit! If this pattern plays out, we might see the Doge price collapse into negative price levels in the coming days!
In this Altcoin analysis, we will be breaking down the key levels we are watching, what needs to happen to confirm our bearish bias and the targets for this bearish head and shoulder pattern forming on the Dogecoin 4-hour timeframe.
The Neckline Confirmation
While we can clearly see the head and shoulder pattern playing out on the chart, there is no indication confirming that it is ready to be traded.
For this bearish bias to occur, the Dogecoin price must close below the horizontal neckline that has served as support for this Altcoin on numerous occasions.
As far as the price continues to trade above this neckline, the Dogecoin bulls have a fighting chance to continue pushing the Doge price higher.
A bullish move like this would invalidate this bearish head and shoulder pattern and also save the Dogecoin from this massive dump in price that could have happened.
Head and Shoulder Pattern Bearish Targets
The bearish target for the massive head and shoulder pattern on the Dogecoin 4-hour timeframe is the -$0.20964 level.
This is a massive 175% dump in the Dogecoin price and would push the Altcoin into negative price levels, potentially predicting the doom of the mem coin.
And while this might sound so impossible to the Dogecoin community, a break and close below that neckline puts this bearish scenario firmly on top of the table.
In the coming days, we want to see how price reacts to this bearish pattern and if the Dogecoin bulls actually have what it takes to keep prices above this neckline!
Final Verdict!
Dogecoin is at a critical point right now in its history, and the key level to watch for is the horizontal neckline. The break of this neckline signifies the completion of the head and shoulder pattern.
As far as the price continues to trade above this neckline we will remain bullish on Dogecoin. However, a price close below the neckline speaks of doom for Dogecoin and a potential 174% dump in price. This dump would push the price to -$0.20964 or less in the nearest future.
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