Dogecoin had a wild week, reaching a high of $0.105 on April 3 after Elon Musk changed his Twitter logo to a Shiba Inu dog. The move caused a stir around the meme coin community, leading to a surge of over 30%.
Although the price has fallen since then, it has not been enough to dampen the overall outlook. According to Coingecko, DOGE is currently trading at $0.090135, indicating a significant 19% rise over the past seven days.
Despite a 1.7% drop in the last 24 hours, DOGE has had the most impressive price performance among the top 10 cryptocurrencies.
What lies ahead for Dogecoin now?
Dogecoin Dips As Bears Take Control
After a period of strong gains, Dogecoin’s momentum appears to be waning. The cryptocurrency has been flashing red on the 1-day timeframe for two consecutive days, signaling the start of a potential downtrend. This could be due to a lack of buyer interest.
Adding to the bearish outlook is DOGE’s daily relative strength index (RSI), which has entered its overbought zone, increasing the likelihood of a correction in the near future. This correction could lead to a drop toward the $0.089 level, which served as resistance during the January and February uptrend.
Bears are known to take advantage of any easing in buying pressure, and if the bearish momentum continues, the Dogecoin price could plummet toward the 200-day Exponential Moving Average (EMA) at $0.082. If DOGE breaks below this level, it could reach the support confluence between the horizontal line and the 100-day EMA at $0.080.
When $DOGE breaks out above the HTF downtrend here, I think $0.25 is a reasonable target. pic.twitter.com/yxUAeqxGHG
— K A L E O (@CryptoKaleo) April 4, 2023
Analyst Predicts Future Gains
Independent analyst Crypto Kaleo, meanwhile, sings a more bullish tune. On Twitter, he said that the cryptocurrency is headed for a breakout above a long-standing descending trendline resistance, which could propel its price to reach $0.25 – a substantial 125% increase.
This prediction is based on a potential increase in buying pressure, possibly fueled by the ongoing altcoin season narrative. If this happens, the immediate resistance level at $0.097 could be shattered, paving the way for more bullish sentiment.
A critical flip of this roadblock into support would also invalidate the bearish thesis, as this level has been a tough hurdle for DOGE investors for several months.
DOGE total market cap currently at $12.4 billion on the daily chart at TradingView.com
In the most optimistic scenario, the Dogecoin price could soar even higher and reach the $0.111 resistance level, which would signal a complete reclaim of the coin’s December 5 high.
As the crypto market continues to evolve, only time will tell where Dogecoin will end up. Nonetheless, it’s clear that the meme-inspired cryptocurrency is causing a stir among traders and investors alike.
-Featured image from Motorsport.com