Dogecoin Price Prediction: The current downtrend of Dogecoin price takes a sideways move as buyers hold the fort at $0.75. This consolidation heralds a reversal for meme coins if buyers complete the double bottom pattern. Despite last week’s 8.5% decline, DOGE price action suggests a turnaround with 30% upside potential. So, should you consider buying this meme coin or wait out the market slowdown?
Dogecoin price at a crucial turning point
- DOGE price is trading near the 50% Fibonacci level and portends a double bottom reversal.
- The pullback phase warns of a death cross if prices break down below the 200-day EMA.
- The 24-hour trading volume in Dogecoin is $2.71 billion, indicating a loss of 16%.
Dogecoin Price | TradingView chart
Dogecoin’s price decline extended into early 2024 as hopes of a rally fueled by the Bitcoin Spot ETF were dashed. This setback had a significant impact on the value of Doge, which fell from its peak of $0.107 to find support at the crucial level of the 200-day EMA, marking a sharp decline of 25.5%.
Following the recent recession, buyers have actively sought to stabilize the market, leading to a period of sideways trading for Dogecoin. Currently, the coin price trajectory is hovering near the 61.8% Fibonacci retracement level, showing signs of a potential bullish recovery, possibly forming a double bottom pattern.
However, Dogecoin’s fate remains uncertain and highly dependent on broader market trends. If the current market sluggishness persists in the coming weeks, there is a risk that memecoin could fall below the crucial support at the 200-day EMA.
This scenario could trigger an increase in supply in the market and potentially lead to a further 17.5% drop in Dogecoin’s value to around $0.066.
On the other hand, a renewal of positive sentiment towards this popular meme coin, possibly fueled by robust community support, could pave the way for a bullish reversal.
Under such circumstances, the price of the coin could breach the resistance of the $0.0877 neckline of the double bottom for buyers with a suitable springboard. The post-breakout rally could boost DOGE price by 22%, to a potential target of $0.107.
Technical indicators
- Exponential Moving Average: The bearish crossover of the 20-day and 50-day EMA signals a short-term bearish phase.
- Moving Average Convergence Divergence: The MACD and signal lines are ready to give a bullish crossover on the daily chart.
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