Dogecoin (DOGE) Rally or More Pain for the Bulls: Whats Next for the Meme Coin
TL;DR
- Dogecoin (DOGE) has dropped to around $0.14, a 12% decline in a week, but some analysts expect a potential price surge based on technical patterns.
- Market analysis shows DOGE has strong support at $0.115 and resistance at $0.16, with an RSI of 48 indicating it is neither overbought nor oversold.
Wheres DOGE Headed?
The largest meme coin in terms of market capitalization Dogecoin (DOGE) has been heavily affected by the recent market decline. Its price tumbled to approximately $0.14, representing a 12% plunge on a seven-day scale.
Despite the downtrend, many X users expect new explosive moves from DOGE. An example is CryptoJack, who anticipates a substantial uptick once the assets price breaks out from a certain descending pattern. He envisioned a 55% increase to as high as $0.22, promising to enter a long position.
Trader Tardigrade speculated, too, claiming that DOGE has been following a specific bullish parallel channel that could eventually lead to a price surge of over $12. The trader paid particular attention to the $1.40 resistance level, which might be reached sometime next year.
The market intelligence platform IntoTheBlock recently suggested that the meme coin is positioned above a significant on-chain support level. The entity estimated that 45 million assets were accumulated at an average price of $0.115, indicating a strong demand zone that could prove important if the market shows weakness.
On the upside, DOGE may face resistance around the $0.16 level, where 20 billion DOGE is presently held at a loss, IntoTheBlock added.
Previous Predictions and On-Chain Metrics
Altcoin Sherpa and KALEO are also among those who recently forecasted a bright future for DOGE. The former expects the meme coin to do something stupid later this year, and theres nothing you can do about it. The analyst claimed that dealing with it is one of the safest trades during the next bull cycle.
KALEO went even further, assuming that DOGE may outperform Bitcoin (BTC) due to the assumption that the industry is in a meme super cycle.
One essential on-chain indicator that signals a resurgence for the asset is the Relative Strength Index (RSI). This technical analysis tool determines whether the cryptocurrency is overbought or oversold. It ranges from 0 to 100, and a ratio above 70 suggests a selling opportunity. The RSI currently stands at 48 and has not crossed the aforementioned level since May 21.
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Text source: CryptoPotato
