Key Highlights:
- Dogecoin has shown volatility, with analysts tracking historical patterns for potential bullish trends.
- RSI analysis suggested DOGE is at a key level where past rebounds led to substantial price surges.
- Analysts highlight resistance levels DOGE must flip to support for a sustained market recovery.
Dogecoin price has experienced sharp price fluctuations over the past month, reflecting the volatile nature of the cryptocurrency market. A price chart from CoinGecko showed DOGE trading between $0.14 and $0.24, with a notable pullback in recent days.
The meme-based cryptocurrency traded around $0.16 to $0.18, marking a correction after reaching a peak of $0.24. Despite the short-term dip, the seven-day performance of DOGE remained positive at +3.7%. This indicated that bullish sentiment is still present.
Broader market trends signal a longer-term decline for the meme coin. Dogecoin price has dropped 15.8% in the past 30 days and 19.1% over the past year. A -4.0% drop in the last 24 hours further signals short-term bearish pressure.
Analysts have shared technical predictions regarding the potential price trajectory of DOGE amid these market movements.
Dogecoin Price Potential for a Bullish Cycle
CryptoElites has presented a historical analysis of Dogecoin price movements, identifying three bullish cycles.
Each cycle followed a pattern involving an accumulation phase, a breakout, and a rapid price increase. Based on this trend, the analyst suggested that DOGE is in the early stages of a new bullish phase.
The analysis indicates that if Dogecoin price follows previous cycles, a significant upward movement could be forthcoming. According to CryptoElites, DOGE could reach as high as $5 in its next market rally.
However, such a move would require a significant market-wide uptrend driven by Bitcoin’s performance and broader cryptocurrency adoption. The analyst previously identified Bitcoin’s bottom at $15,000 and now suggests a similar opportunity for Dogecoin.
Meanwhile, large holder inflows data from IntoTheBlock indicate increased investor confidence. Data on the net inflow of large holders showed a 5.33% increase in the last week. In the last month, flows rose by 6.29%, a sign of higher interest in the memecoin.
This is supported as the 90-day change stands at 3,722.46%. These changes usually occur when bulls are fully entrenched in the market.
Technical Indicators Signal Possible Price Reversal
Separately, Trader Tardigrade has prepared another analysis dedicated to Dogecoin, focusing on the weekly price chart and the RSI indicator. Analyses of historical data show that DOGE price increases significantly when RSI falls to such lows near the oversold level.
Currently, the RSI is at a level that has previously triggered strong upward movements. The analyst continues to opine that, if this is the case, the Dogecoin price could be set to $1.
Such a move would be possible only if it overcame some critical resistance levels. RSI-based predictions are often used to identify potential price reversals in DOGE. This makes the tool highly favored among technical analysts.
Apart from RSI trends, price analysis on a weekly chart is another important factor that depicts DOGE’s future movement. If momentum shifts in favor of buyers, a breakout could follow.
However, other factors associated with the crypto market will be crucial for realizing the projections.
Dogecoin Price Key Resistance Levels
Another market analyst, readCrypto, has highlighted specific price levels that DOGE must reclaim to confirm a recovery. According to this analysis, the $0.1895 level remains a critical threshold. This level previously acted as strong resistance from March 10 to 23, following a price decline on March 9.
At press time, Dogecoin price fluctuated around this resistance zone, attempting to turn it into a support level. The analyst suggests that if DOGE successfully establishes support above $0.1895, it could set the stage for further gains.
However, a decisive move above this mark is needed for sustained bullish momentum. Beyond this key level, the weekly M-Signal indicator aligns with the $0.21409 price mark.
The analyst identifies this as the next resistance that DOGE must clear to confirm a more substantial recovery. If the token surpasses these levels, bullish momentum could strengthen. However, failure to do so may lead to further consolidation or retracement.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
The post Dogecoin Price Eyes $5 Amid Rising Holder Inflows & Demand appeared first on The Market Periodical.
