- Crypto analysts put Dogecoin’s recent price movement in a long-term perspective.
- Despite Dogecoin never achieving $1, several on-chain signals fuel investor hope.
- Restoring $0.10, DOGE remains in oversold territory, approaching a turning point.
This week has been a wild roller coaster for major alternative cryptocurrencies, including Dogecoin (DOGE). After dropping over $500 billion during Monday’s crypto drawdown, the broader crypto markets managed to recoup $300 billion in damages in the next few days.
Dogecoin’s Soft Bounce Keeps Majority in Profit
Showcasing resilience to outside negative factors, such as the Japanese stock market, which sent the Nikkei Average down by 12%, Dogecoin quickly bounced back from the three-month lows hit on August 5, 2024.
Plunging to $0.082 at 11:30 AM GMT that day, DOGE formed a double bottom. The next day, DOGE reclaimed the $0.10 support levels but consolidated above $0.10 two days later after failing to hold the price barrier twice.
The soft rebound can be partly ascribed to the relatively high number of DOGE holders still profiting despite this week’s market-wide setbacks. According to IntoTheBlock’s data, Dogecoin remains one of the leading altcoins by this metric, with profitable Dogecoin holders growing from 67.79% yesterday to 70% today.
What Conditions Need to Be Met for DOGE to Hit $1?
As the massive price fluctuations have captivated attention, Dogecoin’s upcoming price movement is a hot topic between crypto analysts and DOGE Army members. For example, a popular crypto trader and computer engineer, Kaleo, explained to his audience on X that he plans to stack Dogecoin for a couple of months, expecting a “full send” in early 2025.
Kaleo’s bullish prediction of Dogecoin’s price is mostly based on historical price data. Dogecoin saw a pullback of around 30% right before the all-time high of $0.73 on May 8, 2021. For this theory to sustain, the crypto analyst assumes DOGE would trade between the price range of $0.08 to $0.13 “before a full send commences.”
While Kaleo’s analysis is based on historical price movement, Cryptorphic, another analyst who forecasts Dogecoin’s price to tackle the $1 target, portrays a combination of technical indicators and social factors as the game-changer for DOGE. In their analysis, Cryptorphic lays out reasons such as a Relative Strength Index (RSI) under 45, a strong weekly Doji pattern, and most importantly, the retest of February’s breakout as the key points for Dogecoin’s $1 ride.
The experienced trader pinpoints the success of the meme coin sector’s performance as a key trigger. Even though DOGE was among the least profitable meme coins during the massive bull run in March 2024, the trader expects Dogecoin to take the lead if meme coin season returns in full swing. Finally, Cryptorphic marked a weekly close above $0.11, depicted in gray, as a turning point for such a bullish scenario to be validated.
On the Flipside
- Several cryptocurrency analysts rely on the chance of Elon Musk’s potential Dogecoin endorsement to amplify the top dog coin’s bull run.
- While DOGE hit its all-time high partly due to social endorsements, Musk’s mentions of Dogecoin have substantially lost traction since 2021.
Why This Matters
Derived from Bitcoin’s code, Dogecoin is one of the earliest alternatives to BTC. Operating on a Proof of Work (PoW) consensus, DOGE has gradually expanded its community since its inception.
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