- Cryptocurrency analysts analyze Dogecoin’s recent price movements from a long-term perspective.
- Despite Dogecoin never reaching $1, several on-chain signals are giving investors hope.
- DOGE has recovered to $0.10 and is in the overheated selling zone, approaching a turning point.
This week has been a wild roller coaster ride for major alternative cryptocurrencies, including Dogecoin (DOGE). After Monday’s cryptocurrency plunge that saw it shed over $500 billion, the broader crypto market has recovered another $300 billion in losses over the next few days.
Dogecoin’s soft bounce keeps most of its gains
Dogecoin, which has shown resilience to external negative factors such as the Japanese stock market causing the Nikkei average to fall 12%, has recovered quickly from its three-month low recorded on August 5, 2024.
DOGE formed a double bottom as it plunged to $0.082 at 11:30 AM GMT that day. The next day, DOGE recovered the $0.10 support level, but failed to hold the price barrier twice before consolidating above $0.10 two days later.
The soft bounce can be partly attributed to the relatively large number of DOGE holders still in profit despite the overall market downturn this week. According to data from IntoTheBlock, Dogecoin remains one of the leading altcoins by this metric, with profitable Dogecoin holders increasing from 67.79% yesterday to 70% today.
What conditions must be met for DOGE to reach $1?
With the massive price action gaining attention, Dogecoin’s upcoming price action has become a hot topic among crypto analysts and members of the DOGE Army. For example, Kaleo, a popular crypto trader and computer engineer, explained to the audience at X that he plans to hoard Dogecoin for several months and expects a “full send” in early 2025.
Kaleo’s bullish prediction for Dogecoin price is largely based on historical price data. Dogecoin saw a drop of around 30% just before its all-time high of $0.73 on May 8, 2021. For this theory to hold, the crypto analyst assumes that DOGE will trade in the $0.08 to $0.13 price range “before the full transfer begins.”
While Kaleo’s analysis is based on past price action, Cryptorphic, another analyst who predicts that Dogecoin’s price will reach its $1 target, describes a combination of technical indicators and social factors as the game changer for DOGE. In his analysis, Cryptorphic cites the Relative Strength Index (RSI) below 45, a strong weekly Doji pattern, and most importantly, a retest of the February breakout as key points for Dogecoin’s $1 rally.
The experienced trader points to the success of the meme coin sector as a key factor. While DOGE was one of the least profitable meme coins during the massive bull run in March 2024, the trader expects Dogecoin to take the lead once the meme coin season gets underway. Finally, Cryptorphic has marked a weekly close above $0.11, marked in gray, as a turning point for such a bullish scenario to be validated.
On the other side
- Some cryptocurrency analysts believe that Elon Musk is likely to endorse Dogecoin, which could further boost the top coin’s rally.
- While DOGE’s all-time high is partly due to social support, Dogecoin, which Musk mentioned, has lost much of its popularity since 2021.
Why this matters
Derived from the Bitcoin 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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