The value of Dogecoin has been on an upward trend lately, increasing approximately 7% in the recent past, though there’s been a slight dip since then. This rise allowed for a breakout from a bullish pattern, pushing Dogecoin up by as much as 22%, but this potential growth can only occur if a significant resistance level is breached first. Despite the bullish price movements, traders generally have a negative outlook on DOGE, as evidenced by the large influx of DOGE into exchanges yesterday. Are traders attempting to drive down the Dogecoin price, and will it withstand this potential assault?
Dogecoin Price Defies Market Sentiment
Over the past day, the value of Dogecoin decreased by approximately 1.2%, now trading at around 0.1039 USD. Contrary to the pessimistic outlook surrounding the meme currency, this minor decrease stands out significantly.
Meanwhile, Elon Musk inadvertently brought attention to Dogecoin with his recent post about accepting a fictional Cabinet office offer abbreviated D.O.G.E. The tech mogul has also rehashed his cold war with UK justice minister Keir Starmer by calling the country a “police state”.
On Tuesday, we saw a significant net movement of approximately $4.43 million, marking the largest exchange flow since July 20, 2024. This could potentially indicate an effort to manipulate the price of Dogecoin (DOGE) downward.
Data from Coinglass further shows that the open interest (OI) of DOGE increased while the price dropped over the last 24 hours. When this happens, it signals traders are entering Short positions, which is bearish for the price.
Additionally, the Coinglass Liquidation Map demonstrates a greater total amount of Short Liquidation Leverage than Longs, suggesting that traders hold a more pessimistic outlook towards the asset’s price, predicting it to fall further.
Regardless of the pessimistic outlook on the market, predictions suggest that Dogecoin could surge by approximately 22% in the near future.
DOGE Technical Analysis: All Eyes on $0.1085
As an analyst, I’ve observed a significant breakout in the Dogecoin price chart, emerging from a falling wedge that had been developing since early August. This suggests a potential surge in bullish momentum for the cryptocurrency. The recent candlestick pattern exhibits a robust upward thrust, which is usually a positive sign, particularly following a phase of consolidation within the triangle.
As I analyze the market trends, I expect the price of Dogecoin might encounter resistance near $0.1059 due to its alignment with the upper Bollinger Band. If it overcomes this hurdle, there’s potential for a 22% increase, potentially reaching around $0.1274.
The cost is approaching the top limit of the Bollinger Bands, suggesting robust momentum. If it remains close to or above this limit, it might imply persistent bullish influence. Furthermore, the Bollinger Bands are narrowing at the moment, a sign typically followed by a significant price shift in one direction.
According to the Coppock Curve reading, we’re seeing an increase in upward momentum with a current value of 3.02571, which is typically a bullish sign because the curve is gradually rising from its base.
If the price continues to stay above the $0.0995 support level, Dogecoin (DOGE) may continue to be a promising long-term investment. Potential future milestones for DOGE could extend beyond $0.1274, possibly reaching the $0.1500 mark, but this will depend on the overall market conditions.
The forecast for Dogecoin suggests that if the asset adheres to its current pattern, a potential return within the triangle might indicate market instability, possibly leading to a decrease in price to approximately $0.0985 or even $0.0800.
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2024-08-21 13:09