Dogecoin (DOGE) has decreased by 3.2% in the past 24 hours, but this decline may be a precursor to a larger move as the coin's recent rally pauses temporarily.
Trading volume has nearly doubled during the same period, signaling increased interest as DOGE approaches the important resistance level of $0.23.
Meanwhile, other leading meme coins like Shiba Inu (SHIB) and Pepe (PEPE) have also decreased by about 4.4%, indicating that the entire sector is preparing for a rebound as the sellers have exhausted themselves.
So, is the fundamental Dogecoin price prediction still optimistic — or does the decline in the past week signal greater troubles ahead for this leading meme coin?
Dogecoin Price Prediction: DOGE forms a Bull Flag and could rise to $0.35
The price volatility of DOGE has stabilized over the past week after the token reached $0.25, as this level appears to be significant for market participants.
The price has dropped to a one-week low of around $0.21 as momentum indicators have signaled a sell.
The Relative Strength Index (RSI) has surged to overbought levels while the MACD chart has been trending downward for four consecutive days.
Although price movements still support the Dogecoin price prediction of an increase, the rally has reached a point of exhaustion and needs to pull back.
However, this does not necessarily mean that the bullish trend has ended. DOGE has formed a bullish flag pattern that could lead to higher levels if the price breaks above the upper boundary of this pattern.
This resistance level is currently around $0.23 and is an important level to monitor in the coming days. Based on the size of the flagpole, a bullish breakout could push DOGE to $0.35, implying a potential increase of 52% in a relatively short time.
Meanwhile, the important support threshold to watch outside the lower boundary of the flag will be the range from $0.18 to $0.19, as a rebound from this level would still maintain the asset's bullish price structure.