Despite the overall recovery in the cryptocurrency market from the beginning to almost the middle of 2023, most memecoins, especially Dogecoin (DOGE), have shown a sluggish performance. Investors have been closely monitoring the breakout of the descending trend line that has maintained its data presence in DOGE since May 2022, which has dropped a few ranks in terms of market value among the largest cryptocurrencies list.
Critical Threshold in Front of DOGE
Experienced cryptocurrency analyst Ali Martinez stated that Dogecoin is approaching the completion point of the descending triangle formation that has maintained its presence for years. The weekly candle closing above $0.0835 could mark the beginning of a new rally for DOGE, potentially leading it towards $1. However, investors need to be cautious about maintaining the support at $0.0482, as a break at this level could trigger a sharp decline in price.
At the time of writing this article, Dogecoin is trading at $0.058 with a 1.18% increase and a market cap of $8.28 billion. The excessive selling pressure observed in DOGE in recent months could prepare the altcoin for a strong rally and potentially enable it to end the year on a strong note.
Dogecoin Price Prediction
Many analysts who rely solely on technical indicators expect DOGE to recover its price in the near future. The Relative Strength Index (RSI) on the price chart has once again approached the 30 level after spending nearly two months below 50, often dipping below 40 and even lower during this time. Furthermore, DOGE’s 30-day Exponential Moving Average (EMA) has remained significantly below its 200-day average for several months, indicating that the altcoin’s value is relatively low and ready for a potential uptrend.
However, investors should be cautious as there are signs that bears are strong in Dogecoin. DOGE recently fell below the significant support level of $0.60. Moreover, the dominant sentiment among Dogecoin investors, as evidenced by significant transfers made by whales recently, indicates a tendency to sell DOGE rather than accumulate it.
In addition, the trading volume of DOGE in the last 24 hours has dropped to around $175 million today from the peak level of $9 billion in November last year, which is another indicator of weakness. This decrease in trading volume is further evidence of waning investor interest in the altcoin.
