Meme Coin DOGE Eyes Breakout on Multi-Year Chart
Despite the broader crypto market bouncing back in 2023, meme coins have seen a subdued performance. However, Dogecoin (DOGE) is now eyeing a breakout on the multi-year chart. According to crypto analyst Ali Martinez, Dogecoin is approaching the apex of a multi-year descending triangle formation.
If DOGE can close above $0.0835 on the weekly candlestick, it could potentially mark the beginning of a new bullish run, with a target of $1. However, caution is advised as the $0.0482 support level is crucial; any signs of weakness around this level could lead to a new yearly low.
As of press time, Dogecoin is trading at $0.058 with a market cap of $8.28 billion. The recent overselling of DOGE may position it for a strong comeback and a positive end to the year.
Dogecoin Price Prediction
Based on technical indicators, many analysts predict an imminent recovery for Dogecoin. The relative strength index (RSI) has almost reached the 30 mark again after spending nearly two months below 50. Additionally, DOGE’s 30-day exponential moving average (EMA) has consistently remained below its 200-day average, suggesting that the coin is undervalued and poised for an upward trend.
However, investors should exercise caution as Dogecoin has been losing support and breaking down important levels such as $0.60. Furthermore, there are indications that whales are more inclined to sell rather than accumulate DOGE, as seen from recent large transfers. The declining 24-hour trading volume of DOGE also reflects waning market interest in the coin.
Hot Take: Dogecoin’s Future
Despite the subdued performance of meme coins, Dogecoin is showing signs of a potential breakout on the multi-year chart. Technical indicators suggest an imminent recovery and a bullish run towards $1. However, caution is advised as the $0.0482 support level is crucial, and any weakness around this level could lead to a new yearly low.
The recent overselling of DOGE and its undervalued status may position it for a strong comeback in the crypto market. However, investors should be mindful of the declining trading volume and the sentiment among whales, who seem more inclined to offload DOGE. It remains to be seen whether Dogecoin can regain its momentum and attract renewed interest from investors.
Disclaimer: The presented content is based on the personal opinion of the author and should not be taken as financial advice. It is important to conduct thorough market research before investing in cryptocurrencies.
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