Dogecoin has been lacking a significant boost, but if its price closes above $0.0835, it could mark the beginning of a new upward trend for DOGE.
Despite the overall recovery in the crypto market in 2023, meme coin Dogecoin has had a lackluster performance. It recently slipped a few positions in the rankings, but now there’s hope for a breakout.
Crypto analyst Ali Martinez suggests that Dogecoin is approaching a critical point in a multi-year descending triangle pattern. If it manages to close a weekly candlestick above $0.0835, it could trigger a new upward trend for DOGE, possibly reaching $1. However, there’s a word of caution regarding the $0.0482 support level; any signs of weakness there could lead to a new low for the year.
Courtesy: Ali Charts
At the moment, Dogecoin is trading at a price of $0.058, showing a 1.18% increase, with a market cap of $8.28 billion. Despite experiencing significant selling pressure over the past few months, this could pave the way for a notable resurgence, raising the possibility of a strong performance for the cryptocurrency in the remainder of the year.
Dogecoin Price Forecast
Using only technical indicators, many analysts believe that DOGE is on the verge of a recovery.
The relative strength index (RSI) is getting close to the 30 mark again, after spending almost two months below 50. It often dropped below 40 or even lower during this period.
However, investors should exercise caution as Dogecoin has consistently lost support, suggesting strong control by bearish forces. It recently fell below the critical support level of $0.60.
Moreover, the prevailing sentiment indicates that large holders of DOGE are more likely to sell the token rather than buy it, as seen in recent significant transfers.
Additionally, the declining 24-hour trading volume of DOGE is another sign of weakness, dropping from a peak of $9 billion in November last year to approximately $175 million today. This decline reflects diminishing market interest in the coin.
Important:Â 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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