Memecoins
Dogecoin Price Prediction – Examining the Memecoin’s Journey to $0.30
- DOGE weekly and daily price charts remained in the green
- However, some market indicators are leaning bearish for the altcoin.
While a few top cryptos have seen price corrections over the past seven days, Dogecoin [DOGE] acted differently. Meanwhile, a bullish pattern has formed on the memecoin price chart, a pattern that could soon give rise to another bullish rally.
Bullish week for Dogecoin
CoinMarketCap data The price of Dogecoin has increased by more than 6% over the past seven days. This bullish trend has continued over the past 24 hours or so, with its value appreciating by another 3%.
At the time of writing, DOGE was trading at $0.1337 with a market cap of over $19 billion. Which begs the question: can it go higher?
Popular crypto analyst Kevin recently shared a tweet highlighting a bullish falling wedge pattern on the DOGE price chart. According to the same, the price of the world’s largest memecoin has been consolidating inside the falling wedge for quite some time now.
In fact, at press time, the DOGE price was preparing to explode. In the event of a successful explosion, DOGE could reach $0.30 in the coming days or weeks.
Source: X
Will DOGE Really Break Through?
To further assess this scenario, AMBCrypto then took a closer look at the current state of the memecoin to better understand whether it would manage to break out of the tailwind. Our analysis of Santiment data revealed that DOGE’s trading volume has decreased while its price has increased. This is generally considered a bearish signal.
The memecoin’s MVRV ratio has dropped, which can also be inferred as a bearish development.
Moreover, the pessimistic sentiment for Dogecoin remained in the negative zone. To put it simply, bearish sentiments retained their dominance over the market.
Source: Santiment
Our analysis of Coinglass data revealed another bearish signal. The DOGE long/short ratio has registered a decline. This is a sign that there have been more short positions in the market than long positions.
Apart from this, many market indicators also looked rather bearish at press time. For instance, the Relative Strength Index (RSI) registered a decline. Dogecoin’s Money Flow Index (MFI) also followed a similar trend. Moreover, the MACD also signaled the possibility of a bearish crossover.
All these indicators together suggest that DOGE may soon see some price correction.
However, there are still chances that DOGE could break out of this pattern. This was the case as its price continued to trade above its 20-day simple moving average (SMA), according to the Bollinger Bands. If Dogecoin tests this support level, then a breakout is likely to occur.
Source: TradingView
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However, before targeting the $0.3 level, DOGE must first break above $0.135 as liquidations would increase sharply at this level. Heading north, the next possible target for DOGE in the short term would be $0.143.
Source: Hyblock Capital