Dogecoin (DOGE), the popular dog-themed cryptocurrency, has experienced a noticeable 6.6% decline in the past seven days, dropping from highs of approximately $0.484 to around $0.388 at the time of writing. As the price faces this correction, many investors are left wondering whether the asset has reached its peak or if it still holds potential for further gains.
Despite this downturn, some analysts believe the concerns surrounding DOGE’s future are overblown. On December 11, prominent DOGE commentator “KrissPax” reassured the community by stating, “All is good,” emphasizing that price corrections are a normal part of any asset’s journey after extended rallies. In DOGE’s case, the cryptocurrency surged by an impressive 200% before the current pullback. KrissPax shared a daily candle chart illustrating that the asset is currently oscillating between the price points of $0.36 and $0.48. According to KrissPax, DOGE bulls will want to see a strong break above the $0.48 level on the daily timeframe for the price to continue its upward trajectory.
There's nothing wrong with Dogecoin. It's now looking like a month-long sideways channel following a 200% rise in price. All is good. Let's go Ðoge! $DOGE pic.twitter.com/qytGu6t8IV
— KrissPax (@krisspax) December 11, 2024
These insights align with findings from crypto intelligence platform Santiment. On the same day, Santiment indicated that DOGE’s bull run remains intact, pointing to the asset’s Mean Dollar Invested Age as a key indicator. This metric measures the length of time coins remain idle in wallets, providing a clear view of investor behavior and market activity. Santiment revealed that the Mean Dollar Invested Age for DOGE has been trending downward, having dropped by 31% in the last eight weeks to 370 days.
This decline in the Mean Dollar Invested Age suggests that coins are becoming more active and are being returned to circulation. Santiment views this as a bullish signal, interpreting it as evidence of growing network activity and investor confidence. According to the platform, the downtrend in this metric signals that the ongoing bull market for DOGE is likely to continue, at least in the short term.
For DOGE investors, the current price action presents an important turning point. While the 6.6% dip has triggered caution among some traders, the asset’s strong historical performance and the technical indicators suggest that a price breakout could be on the horizon. To see further upside, bulls will need to push DOGE above the critical resistance level of $0.48. Should this level hold, the asset could see renewed upward momentum.
Also Read: Can Dogecoin (DOGE) Surge to $18? Analysts Predict Bullish Rally Despite Recent Consolidation
In conclusion, despite the recent price decline, analysts suggest that DOGE’s bull run may not be over. With increased network activity and the potential for a breakout above $0.48, there remains optimism that the dog-themed cryptocurrency still has room for growth. However, as always, investors should remain cautious and watch for key technical levels to determine the next phase in DOGE’s price evolution.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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