- Dogecoin has experienced a resurgence in popularity in recent months, culminating in a run-up in price to just under $0.17 per coin. Many believe that this is due to a growing awareness of the coin and its unique properties, which include a wide distribution and a friendly community.
- Some believe that the current price is sustainable, while others believe that it is only a matter of time before the price starts to rise again. In either case, it is clear that dogecoin has a bright future ahead of it.
Factors affecting the price of Dogecoin
There are a few factors that could lead to dogecoin seeing another price increase in the near future.
- Firstly, the overall crypto market has been on the rise in recent weeks, with Bitcoin and Ethereum leading the charge. This could provide the boost that dogecoin needs to reach its next price target.
- Secondly, the recent introduction of dogecoin futures on the Binance exchange could lead to more investors taking positions in the coin. This could lead to increased demand and a higher price.
Dogecoin price to retrace its steps back higher
- Dogecoin price has crashed a whopping 85% from its all-time high and is currently hovering around $0.14. From 29 September 2021 to March 23, it formed three distinctive lower highs and lower lows, which when connected using trend lines reveals a falling wedge pattern.
- While the initial move after a breakout and retest was impulsive, it shattered the $0.161 hurdle and tagged the first target at $1.78. However, a further upswing was not possible as investors began to book profits and the market structure for the big crypto deteriorated.
- As a result, DOGE triggered its corrective move to 0.13 forming a base around this level.
- A resurgence of buying pressure is pushing the meme coin back above the $0.144 hurdle in an attempt to retest the $0.178 barrier. This run-up could constitute a 23% ascent, but a flip of the said ceiling could extend the rally to $0.216, bringing the total gain to 50%.
Conclusion
- A value below -10% indicates that short-term holders are selling at a loss and is typically where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as an “opportunity zone,” since the risk of a sell-off is less.
- For DOGE, this indicator has been hovering below the zero line since Q4 of 2021 and is currently at -38%, suggesting that many investors are underwater. Therefore, long-term investors could scoop up the DOGE tokens at a discount further propping up the price of the meme coin and triggering a quick run-up.
