Dogecoin’s Decline May Be the Perfect Setup for a Potential 400% Surge : Here’s Why
The cryptocurrency market has seen significant volatility in the past month, with Bitcoin (BTC) reaching $69,000 and dropping below $60,000. This has impacted altcoins, particularly meme coins, causing concern among stakeholders. Analyst Michael Van de Poppe expressed apprehension, while some analysts have a contrary view, especially regarding Dogecoin (DOGE).
DOGE Historical Patterns
Experts studying DOGE’s historical cycles argue that the current pattern indicates an imminent bounce, with a potential 400% surge reminiscent of the 2020 cycle.
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Price Action and Chart
Despite its recent decline, the coin’s historical performance suggests an upcoming recovery. DOGE is currently trading at $0.107, reflecting a 4.97% daily decline and a 17.86% weekly decline, with a reduced trading volume of $713.6 million over the last 24 hours.
Analysis of DOGE’s Relative Strength Index (RSI) indicates a strong downward momentum, with an RSI of 34 and an RSI-based MA of 49. Sellers currently dominate the market, as evidenced by the higher selling pressure. However, the RSI entering the oversold territory presents a potential buying opportunity, likely to trigger a trend reversal through increased buying pressure.
The directional movement index highlights a declining bearish momentum, with the negative index diminishing. Coupled with a positive funding rate of 0.005% and decreasing large holders’ outflow, indicating decreased asset selling, these factors imply a potential trend reversal. If DOGE closes above the critical support level of $0.105 on daily charts, it may signal a reversal and a move towards challenging the significant resistance level at $0.13.
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