Dogecoin’s price movement has experienced contrasting fortunes within the month. First off, the DOGE price surged significantly between 3 and 12 November. During that period it gained by a large margin, something that reignited the market’s bullish momentum. From there, however, it entered a horizontal channel that lasted for the next 10 days. After reaching a local peak of $0.4715 on 23 November, its price started dropping.
At present, DOGE seems to be in a minor retracement since its price has not yet dipped below its recent swing low at $0.3617. At the press time, DOGE is trading at $0.20267 DoGE/USDT on Gate.io. The following graph shows the token’s price action since 3 November.
DOGE Price Action – Coingecko
As you note in the graph, DOGE’s current price is still higher than the value of its most recent swing low. That indicates that its uptrend may continue. However, the Dogecoin statistics are distressing to most investors. First, the DOGE value decreased by 9.8% during the last 24 hours. Additionally, it lost by 1.7% within the past 2 weeks. Overall, though, its price surged by 187.1% during the previous 30 days. This means that most of its short-term holders are still in profit zones.
Reasons for DOGE’s Recent Price Rally
The recent DOGE rally led investors to conclude that the number one ranked meme coin may attain a new all-time high. To recall, Dogecoin reached its ATH of $0.7376 on 8 May 2021. Since many other crypto assets attained new all-time highs this season analysts have expected DOGE to do the same. In addition, this rally has come at a time when many meme coins such as WIF, BONK, PEPE and Shiba Inu show bullish cues. Even though most of these assets have experienced similar dips, the higher time frame charts show that they are still within uptrends.
Of course, bitcoin has been the leader in this Q3 bullish period as it attained a new ATH of $99,655.50 reached on 22 November. However, at the moment the value of the number one ranked cryptocurrency has receded to 93,687.83. This comes after its price fell by 4.89% during the last 24 hours. As you have noticed, the bitcoin price cool-down has affected the entire crypto sector.
The second reason that led to DOGE’s recent price spike was the rumour that Elon Musk plans to add the meme coin to X as a means of payment within the social media platform. Anyway, if the rumor of DOGE integration into the “X payment systems” becomes a reality that will likely push its value to a greater value than most analysts forecast.
DOGE’s Technical Analysis
As said earlier, DOGE could be in a minor correction at the moment. If that is the case its price may continue on its upward trajectory. To further gain insight into its future price movements let’s look at what its technical indications show. If you’re new to cryptocurrency trading and unsure about the process, you can visit Gate.io’s “How to Buy DOGE” page for a detailed step-by-step tutorial designed for beginners.
DOGE Daily Price Chart – TradingView
The technical indicators in the image above show that DOGE is within a bullish period. First, the future kumo is green and expanding showing a bullish outlook. Second, the pull-back has failed to break below the 0.236 Fibonacci level. This indicates that there has not been a trend reversal as yet. Therefore, the uptrend is still intact. A downtrend, in this case, will be validated if the price falls below the 0.236 Fib level that syncs with the $0.364 price mark. Generally, still, the DOGE trading volume is high showing that the bullish momentum is strong. The next diagram shows additional technical indications for DOGE price action.
DOGE Price Action – TradingView
As the picture shows, the RSI has a reading of 75.76. This shows that the asset is overextended and its price may fall. On the other hand, the ADX is at 67.75 an indication of strong crypto volatility. This simply means that the asset price may rise suddenly or fall remarkably if there is a change in buying or selling pressure. The reason why its price may fall is that it is within a profit zone for most investors. If they decide to dispose of their holdings its value may plummet.
Dogecoin Price Prediction
Looking at the current technical outlook the DOGE price may fall by a large margin if the selling pressure increases. This is because the nearest support level is $0.175 which is below the 100% Fibonacci level. On the other hand, if the buying pressure increases the DOGE next price target is $0.574, which it breached below on 3 May 2021.
Some crypto analysts forecast that DOGE may surpass $1 during the current season. For instance, Ali-charts’ DOGE price prediction shows that the asset may reach $2.40 DOGE/USDT this year. He made this analysis based on the meme coin’s recent ascending channel.
On the other hand, Coinpriceforecast, an on-chain analytic platform, forecasts the DOGE price to reach $0.71 DOGE/USDT by the end of the year. To achieve that it should first breach above the $0.40 psychological resistance level. Thus, there is a high possibility that its price may surpass $1 within the next few months.
