Dogecoin Price Breaks Out: Is $0.20 Next?
Amid a shift in market sentiment, Dogecoin’s price has surged significantly but is now undergoing a correction phase. This surge propelled the meme coin to break above both the descending trendline resistance and a crucial horizontal level, signaling a bullish sentiment for DOGE overall.
Current Price Momentum
As of the latest update, Dogecoin is priced at $0.1645, reflecting a 5% decline over the past 24 hours. However, there has been a notable decrease in trader and investor participation, resulting in a 45% reduction in trading volume.
This decline in trading volume during the price dip suggests a weakening market momentum, hinting at a potential correction following the recent bullish breakout and price surge.
Key Technical Levels and Price Action
Technical analysts point out that Dogecoin is currently retesting a critical support level at $0.165. Additionally, the price of Dogecoin is below the 50-day Exponential Moving Average (EMA) on a daily timeframe, indicating a bearish trend with selling pressure and limited bullish momentum for a possible reversal in the short run.
Moreover, the Relative Strength Index (RSI) is at 44, nearing the oversold zone, which could imply a waning selling momentum and the potential for a temporary rebound if buyers step in.
Insights and Potential Forecast
Market experts suggest that Dogecoin could see a 20% upside rally, with projections indicating a possible surge to the $0.260 level in the near future. On-chain metrics reveal that approximately $25 million worth of DOGE has exited exchanges, hinting at potential accumulation.
Expert Commentary from Sam Boolman, ChainIntel’s Lead Analyst
According to Sam Boolman, ChainIntel’s lead analyst, ‘Dogecoin’s recent breakout above key resistance levels is a positive sign for the coin’s trajectory. However, the current market conditions indicate a need for caution as the coin faces a potential correction. Traders should closely monitor the $0.165 support level for further price action clues.’
‘The on-chain data showing significant DOGE outflows from exchanges could suggest a shift towards accumulation, but investors should remain vigilant amidst the ongoing market volatility,’ added Boolman.
Disclaimer: This article is for educational purposes only and does not constitute financial, investment, or other advice.
