Dogecoin has lacked a significant boost, but if it closes above $0.0835, it could mark the beginning of a new uptrend for DOGE.
While the wider crypto market has shown signs of recovery in 2023, meme coins have been relatively quiet. Dogecoin, in particular, has slipped in the rankings but is now looking for a breakout on a long-term chart.
A well-known crypto analyst, Ali Martinez, mentioned that Dogecoin is approaching a crucial point in a multi-year pattern called a descending triangle.
If the weekly closing price goes above $0.0835, it could signal the beginning of a new upward trend for Dogecoin, possibly aiming for $1. However, investors should be cautious about the $0.0482 support level; any signs of weakness there could lead to a new low for the year, he cautioned.
At the moment, Dogecoin is trading at $0.058, up 1.18%, and has a market cap of $8.28 billion. The recent decline in DOGE’s value over the last few months might pave the way for a strong comeback, possibly leading to a solid end of the year for the cryptocurrency.
Dogecoin Price Forecast
Relying on technical indicators, many analysts believe that DOGE is due for a rebound.
The relative strength index (RSI) is nearing the 30 mark again, which is a sign of potential recovery after being below 50 for nearly two months, often dropping even lower.
Additionally, DOGE’s 30-day moving average has been significantly below its 200-day average for a while, suggesting that the coin is undervalued and could be on the verge of an uptrend.
However, it’s essential to be cautious because Dogecoin has been losing support recently, indicating strong bearish influence. It even broke below the important support level of $0.60.
Furthermore, there’s a sentiment that big holders of DOGE are more likely to sell rather than buy, as seen in recent large transfers.
Lastly, the 24-hour trading volume for DOGE has been decreasing, dropping from $9 billion in November last year to around $175 million today. This reflects decreasing interest in the coin in the market.
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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