After a promising 16% rally the previous week, Dogecoin (DOGE) finds itself once again on a downward trend, mirroring the broader crypto market’s red zone. Despite its popularity as one of the leading meme coins, Dogecoin’s performance has consistently disappointed holders for years. However, recent analysis reveals a potential profit-making opportunity that could lead to a significant price rebound.
Why Dogecoin Price Could Double Soon
Dogecoin, known for its Shiba Inu mascot and a passionate community, has struggled to regain its former glory. Once trading at a staggering $0.7376 three years ago, DOGE has seen a drastic decline, now sitting at approximately $0.1034 with a market capitalization of $15 billion. Despite the ongoing downtrend, optimism lingers within the community and among crypto analysts, especially with the arrival of Uptober and speculation about the next bull run.
Crypto analyst Ali Charts has highlighted an important technical indicator that could signal a substantial price increase for Dogecoin. In a recent post, Ali pointed out the historical significance of the Moving Average Convergence Divergence (MACD) crossover. According to his analysis, the last two instances of a bullish crossover on Dogecoin’s weekly charts resulted in impressive gains, including surges of 90% and 180%.
- Key Historical Moments:
- On October 16, 2020, DOGE experienced a crossover, leading to a price peak of $0.10 within eight weeks.
- Earlier this year, in February, another MACD crossover propelled DOGE to $0.2288, marking a 178% surge in just six weeks.
Ali suggests that if a similar MACD crossover occurs soon, it could potentially push Dogecoin’s price to $0.2068, effectively doubling its current value.
Technical Indicators – What’s Next for DOGE?
While analysts remain hopeful, the technical indicators tell a nuanced story. Dogecoin’s all-time high of $0.7376 remains a distant target, with many believing that achieving the $1 mark is unlikely in the near term. Instead, Ali’s analysis points towards an immediate potential price of $0.2068, which was last seen during March’s rally.
However, the prevailing sentiment in the market indicates strong selling pressure. The Relative Strength Index (RSI) is currently neutral, suggesting that ongoing trends may continue without a significant reversal in the near term. As DOGE attempts to find support around $0.09139, its failure to bounce back could mean a continued downtrend unless it can overcome key resistance levels at $0.013456.
If DOGE successfully breaches the $0.012356 resistance, analysts suggest it may initiate an uptrend toward recent highs, creating renewed optimism among holders and investors alike.
While Dogecoin’s recent performance has been disappointing, the potential for a significant price increase remains alive, thanks to favorable technical indicators and historical patterns. The crypto community watches closely as the market conditions evolve, hoping for a much-needed turnaround. Will Dogecoin seize the moment and double its price? Only time will tell, but analysts are certainly keeping an eye on the charts.
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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