Dogecoin (DOGE) Stabilizes After Market Volatility
Dogecoin (DOGE) appears to have stabilized after days of broad market volatility. According to CoinMarketCap data, the dog-themed coin reached a monthly high of $0.29 from the $0.15 low. However, profit-taking activities caused the price to decline to $0.22, as noted in our recent post. At press time, DOGE was staging a rebound with a 4% surge on its daily price chart to trade at $0.237.
More About the Recent DOGE Movements
Looking into the cause of the recent upsurge, analysts observed a strong institutional move with Bit Origin, for instance, allocating $500 million into the DOGE treasury. As highlighted in our earlier blog post, this makes them the first major US company to hold a financial reserve in the asset. However, overbought condition and a lack of sustained pressure were cited as the reasons for the subsequent retracement. DOGE’s Relative Strength Index (RSI) is now hovering around the 59 level, signalling a neutral sentiment. Fascinatingly, analysts explain that there is more room for growth.
On the MACD indicator, analysts observed there is a bullish potential as the line hovers at 0.0177, which is above the signal line at 0.0174. Meanwhile, the moving averages show a mixed outlook. The DOGE price is currently above the 200-day SMA at $0.22. However, it remains below the 7-day SMA at $0.25. Analysts explain that this suggests a short-term weakness in a long-term uptrend. Technically, this confirms a consolidation phase.
According to on-chain data, DOGE whales also continue to accumulate the asset as addresses holding more than 10 million of the token now control 122.59 billion DOGE. As explained in our previous publication, this represents 81% of the total supply.
Based on the market behavior, the most crucial resistance level for DOGE has currently been fixed at the $2.9 level. On the other hand, the $0.17 level has been highlighted as reliable support for the asset. Mathematically, this represents about a 29% decline from the current level. Breaking below this level could see DOGE trading at $0.14.
For now, $0.24 has been tipped as a perfect entry and a more favorable position. However, conservative investors could wait for a decisive break above the $0.25 level before establishing a position.
Analysts Opinion
Analyst Ali Martinez argues that the TD Sequential indicator on the DOGE/USDT hourly chart indicates a buy signal, and could fuel its next rally, as detailed in our earlier review.
In the long term, DOGE is expected to reach a market cap of $1 trillion, with analyst Crypto Kaleo predicting a 2,600% surge to $6.9. According to this trader, DOGE is preparing for an “imminent God candle”. As mentioned in our earlier discussion, another analyst, called Trader Tardigrade, expects a 4,259% rise to $8 in the long term.