Dogecoin (DOGE), the largest meme coin by market cap, has fallen hard since the 2021 bull. It has been trading at a 90% discount from its last peak price in about a year. This makes up to 15x price movements possible in a possible recovery.
Extreme drop gives green light for Dogecoin
Dogecoin price broke above a descending trendline that served as a strong resistance throughout December 2022. During the recent uptrend, it showed potential to rise to the midpoint of the downtrend. Over the past few days, the price has been giving firm signals that point to a change in market behavior.
Currently, the bulls have regained levels above $0.07 after testing lows in the $0.661 zone. The price climbed above the 200-day MA just before the previous daily candle closed, indicating a resurgence of the uptrend.
Moving within a continuously ascending parallel channel since the beginning of 2023, DOGE is currently aiming to regain the lost levels above $0.08. Meanwhile, trading volume, which is largely dominated by bulls, has also intensified, so the price is expected to remain a little more bullish.
A broader perspective shows that Dogecoin price is poised for a larger price action as the Bollinger Bands get stuck on the daily chart. Additionally, the MACD indicates the possibility of a bullish crossover as the price is about to break above the 20-day SMA, which represents the middle bands. Also, the fact that the RSI has been bullish several times expresses the confidence of Dogecoin (DOGE) price to retrace positions above $0.08 from now on. Analyst Sahana Vibhute predicts that in such a case, we can hit the $1.0 resistance with a potential 15x rise in DOGE price during the year.
How ready is the leading meme coin for such a rally?
Dogecoin caught more than 150% rally opportunities with Elon Musk and Twitter news late last year. However, the new year suggests we may see more activity in the altcoin market with a rising Bitcoin price. Analyst Prasanna predicts that in an environment where these two scenarios are combined, we can see a 5-7 times increase in the price of Dogecoin. As a result, the Dogecoin price is predicted to be between $0.20 and $0.40 by the end of 2023. It’s worth noting, though, that not all prospects are up.
Machine learning algorithms expect Dogecoin price drop in the short term
Machine learning algorithms in the crypto tracking platform PricePredictions 30-day forecast predicted that Dogecoin would trade at $0.071286 by the end of January, about a 1.7% correction from its current value. Currently, Dogecoin is facing a resistance at $0.0729 and if it surpasses it, it will likely enter an uptrend towards the $0.073 zone.
In particular, DOGE, which previously benefited from Elon Musk’s acquisition of Twitter, could surprise the market with a 2021-like rally if the first speculation of the token integrated as a payment option on the social media platform materializes. In addition, DOGE recorded a marked increase in whale activity, which prefers to hoard amid low prices. cryptocoin.comWe have included the details of the transactions in this article.