From TradingView · · 1m 20s
Dogecoin faces steep drop as bond markets signal trouble
A trader warns DOGE could fall to $0.03 or lower based on Treasury yields and USDT dominance patterns.
In brief
A trader warns DOGE could fall to $0.03 or lower based on Treasury yields and USDT dominance patterns. Watch USDT dominance at 7.2% for 8+ hours to confirm whether crypto's downtrend continues or a brief rally emerges first. Originally reported by TradingView.
USDT dominance signals the trend
If USDT dominance stays above 7.2% for over 8 hours, the crypto downtrend continues. A drop below signals one final bullish rally before the bear market returns.
Brief rally targets before collapse
If a bullish rally happens, take profits on Dogecoin at $0.143, $0.163, and $0.23. But the base case predicts a crash to $0.0324 or even $0.0094.
Bond yields drive crypto prices
Treasury bonds have a negative correlation with crypto markets. The 10-year yield pattern will determine whether Dogecoin rallies briefly or crashes hard.
“bonds is a key driver for many collateral markets, thus it has a negative correlation”
Ending diagonal scenario
If bonds form an ending diagonal pattern, yields could pull back to 4.185%. This would strengthen the yen and temporarily boost crypto and commodity prices.
Zigzag pattern means disaster
The alternative: if the bond pattern is a zigzag instead of an impulse, yields could hit 7.66%. That would trigger aggressive downturns across all collateral markets.
Bearish targets set since 2022
The trader identified two probable bearish targets for Dogecoin back in 2022. Reaching those levels depends entirely on which structure US Treasury bonds form.
The essence
Watch USDT dominance at 7.2% for 8+ hours to confirm whether crypto's downtrend continues or a brief rally emerges first.
