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Dogecoin Price Forecast: Is DOGE Setting Up For $0.20 Rebound?
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Key Points:
- Dogecoin is has reached a decisive support level at $0.14 after recording a 47% correction in April.
- Market analysts speculate on a potential rebound above $0.20, in the near-term
In this article:
Dogecoin is currently at a pivotal decisive point amid a 47% correction in its price, with market analysts debating its next direction from here.
DOGE price action has historically shown dramatic fluctuations, often followed by significant rallies. In previous years, according to crypto analyst Ali Martinez, patterns such as the descending triangle led to substantial price increases. For instance, after a 40% retraction in 2017, Dogecoin surged by 982%.
Bull-Bear Argument Amid Ongoing Challenges
A similar scenario occurred in 2021 with a 56% price drop preceding a 12,197% bull run. Presently, Dogecoin has emerged from another descending triangle, this time experiencing a 47% correction. This has led some analysts, including Martinez, to anticipate another major bull run.
On his hand, crypto chartist Rekt Capital recently highlighted a Head & Shoulders pattern on the weekly chart, suggesting potential further declines. Market data confirms this formation, pointing to critical tests at key support zones, including the Macro Downtrend and the black Range Low.
These observations suggest that Dogecoin’s current market position is precarious, with essential support levels being tested.
Recent developments in Dogecoin’s market dynamics indicate significant challenges ahead. The crypto experienced a severe downturn in April 2024 along with the broader market, with its market capitalization diminishing by $3.7 billion over just ten days.
Despite a brief rally around DOGE Day on April 20, indicative of a potential recovery, the resurgence was short-lived. The broader impact of the Bitcoin halving event during the same period exacerbated the volatility, as it significantly influenced other major Proof-of-Work cryptos, including Dogecoin.
On-Chain Data and Miner Activity
Further insights from on-chain data reveal significant activity among Dogecoin miners that could influence the coin’s price direction. Notably, recent shifts in miner reserves suggest a possible continuation of the downward trend.
Current on-chain data shows that only 18.45% of Dogecoin addresses are seeing profit on their holdings, compared to 32.49% that are “Out of the Money” (holding at a loss). The largest segment, constituting 49.06% of holders, purchased their Dogecoin at prices around the current market value, indicating potential vulnerability to market shifts.
As of the latest data, Dogecoin’s value stands at $0.1262, reflecting a 2.99% decline in the last 24 hours and a 16.54% drop over the past week. This downturn has positioned Dogecoin below the performance of the broader cryptocurrency market, which has seen a lesser decline of 9.60% in the same period. The total market capitalization of Dogecoin has also suffered, shedding approximately $3.7 billion over the last ten days.
About the Author
Ibrahim Ajibadeauthor
Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.
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