Dogecoin’s price is expected to bounce back after clearing hurdles at $0.07, but it’s facing resistance at $0.08, slowing down the anticipated climb beyond $1. The optimism is driven by a growing number of users getting involved.
In recent months, altcoins, including Dogecoin (DOGE) and Cardano (ADA), have shown a trend of moving independently from Bitcoin, according to research from Kaiko. While XRP and Binance (BNB) experienced a significant decline in correlation with Bitcoin, Dogecoin and Cardano maintained a relatively strong correlation.
#Bitcoin has de-correlated with #Altcoins in the last 60 days!$XRP and #BNB have registered the largest drop in correlation.
While $DOGE and $ADA have remained mostly correlated.
Source: @KaikoData pic.twitter.com/NkFZgv2jSy
— CryptoBusy (@CryptoBusy) November 27, 2023
Dogecoin’s Recent Performance Amidst Market Changes
Despite a 1.6% dip to $0.078 on Monday, Dogecoin (DOGE), the leading meme coin, has managed a 5% increase over the past week, adding to the cumulative 14% gain in the last 30 days, according to CoinGecko’s market data.
However, there’s a notable decline in trading volume, with a 35% drop recorded, amounting to $458 million. The ongoing sell-off has led to a 1.54% reduction in DOGE’s market cap within 24 hours, bringing it down to $11 billion.
Dogecoin’s Bullish Momentum and Recent Corrections
The bullish momentum in Dogecoin found support at $0.058, prompting investors to increase exposure with the expectation of surpassing the psychological resistance at $0.1.
Significant movements above key Moving Averages (MAs), including the 50-day Exponential Moving Average (EMA) in red, the 100-day EMA in blue, and the 200-day EMA in purple, boosted confidence in the uptrend. Dogecoin even confirmed the formation of a double-bottom pattern, contributing to its climb to an eight-month high of $0.0876.
However, amidst a profit-booking wave in the broader crypto market, Dogecoin retraced to test support at the 50-day EMA around $0.07.
Dogecoin price prediction chart | Tradingview
Dogecoin’s Short-Term Challenges and Long-Term Optimism
Despite a quick rebound from support, Dogecoin faces a major hurdle at the $0.08 resistance level. The long-term bullish perspective keeps investors optimistic, but overcoming this obstacle is crucial for price recovery.
While the Moving Average Convergence Divergence (MACD) indicator currently signals a sell, there’s potential for another dip to lower support areas, like $0.07, before the next recovery attempt beyond $0.1.
The recent shift of the double-bottom pattern’s neckline from resistance to support is typically a positive sign. Traders can consider maintaining their long positions with the goal of profiting above $0.1.
Dogecoin’s Growing User Base and Fundamental Strength
Recent data from IntoTheBlock, a blockchain analytics platform, highlights a notable milestone for Dogecoin: there are now over 5 million addresses holding a balance. This steady growth since August indicates a rising risk appetite among investors for the popular meme coin.
Dogecoin addresses | IntoTheBlock
Coinciding with this increase in addresses, Dogecoin’s user activity surged, reaching 168,000 active addresses transacting on the network on November 27. This level of engagement marks the highest since March 2022.
This milestone coincides with a remarkable surge in Dogecoin's user activity. Notably, there were 168,000 active addresses yesterday, marking the highest engagement since March 2022.
🔗https://t.co/sVl5CEGSe2 pic.twitter.com/3eyOhGqkCd— IntoTheBlock (@intotheblock) November 27, 2023
Despite facing resistance at $0.08, Dogecoin’s robust fundamentals, such as growing investor risk appetite and increased user engagement, suggest a resilient bullish future. If the support at $0.07 holds, there’s potential for another rally, driven by momentum from investors buying the dip. While surpassing $0.1 would be significant, it may signify the beginning of a more bullish trend rather than the end of the uptrend.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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