3 Reasons Why Dogecoin Price Could Surge 30% Soon

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Last week, Dogecoin‘s price experienced a robust recovery following approximately two weeks of relatively stable pricing. However, DOGE has once more paused around the $0.40 mark. Technical indicators and a decreasing social sentiment score suggest a potential significant rise. Therefore, could it surge to hit the next psychological milestone at $0.50?

Dogecoin Price To Benefit From Falling Social Sentiment

One possible factor influencing Dogecoin’s price could be a significant decrease in its social momentum, with a score of -0.60, far lower than its level in March. This metric, which examines the frequency of mentions on social media sites such as X, is crucial for understanding public sentiment towards the cryptocurrency.

Frequently, the public’s positive feeling towards a cryptocurrency increases when it’s experiencing a robust upward trend since people tend to stay hopeful. Yet, typically, an excessive amount of enthusiasm can result in sudden downturns, which may be due to seasoned investors cashing out.

simultaneous with this, certain cryptocurrencies tend to increase when their social sentiment scores decrease. It’s hypothesized that some astute investors take advantage of the negative price trend to purchase these coins. As demonstrated in the example below, Dogecoin’s price significantly increased in November while its social score remained low.

According to data from both CoinGecko and CoinGlass, the daily trading volume and open interest for Dogecoin is currently significantly lower compared to its peak in the past month.

DOGE Is Cheap, According To The MVRV-Z Score Indicator

Currently, the market value to relative value z-score indicator suggests that Dogecoin (DOGE) remains undervalued, as it has surged by an impressive 365% from its lowest point in September.

As a crypto investor, I’m keeping a close eye on the latest data from Glassnode. The score for this particular coin has dropped to 2.40, down from its November high of 2.70. This dip could be an indication that the MVRV-Z score, which measures a coin’s market value against its relative value, might be undervalued. When the score falls below 3, it often means the cryptocurrency is considered cheap. So, I’m considering this potential drop as a potential buying opportunity.

Furthermore, the MVRV (Maker’s Value Realized to Vested) score appears to be shaping like a cup and handle chart configuration, suggesting a possible price increase or recovery.

Dogecoin Price Technical Pattern Points to More Gains

According to the 4H chart, it appears that the Dogecoin price still has room to increase in the short term. It started at $0.3033 and reached a high of $0.40 on Saturday.

dogecoin has surpassed its 50-day moving average, typically indicating a bullish market trend for the asset. Furthermore, it has developed a bullish pennant shape, characterized by a lengthy horizontal line followed by a contracting triangle formation.

As a crypto investor, I’m excitedly watching the price action because a decisive surge beyond the resistance of $0.3986 (the peak of our recent pennant formation) could signal further growth. My optimistic outlook projects the price reaching $0.4800, which was our highest swing point in December. If this bullish momentum holds, we might even reach the psychologically significant level of $0.50, a 30% increase from our current position.

If the Dogecoin (DOGE) token falls below its crucial support level of $0.34,17 (the peak swing recorded on December 25), the bullish price forecast could be rendered ineffective.

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2025-01-06 16:07