Dogecoin (DOGE) started as a fun meme-based cryptocurrency, inspired by the popular Shiba Inu dog meme. Originally launched in 2013 as a joke, it has grown into a widely recognized cryptocurrency with a passionate community and notable backing from public figures such as Elon Musk. Despite being created for fun, Dogecoin has seen significant growth and attention in the market. Like many other cryptocurrencies, its price can experience extreme volatility, influenced by both market trends and social sentiment.
🛡️25% Drop or 55% Rise: What to Expect from Dogecoin (DOGE)
The price of Dogecoin (DOGE) has been falling for several months in a row. However, the formation of a falling wedge pattern on its price chart suggests that a bullish reversal may be approaching. By looking at technical indicators and on-chain metrics, we can assess what awaits Dogecoin in the coming weeks.
🛡️Dogecoin Tilts Towards Bears
Currently, the market sentiment around Dogecoin is clearly bearish. An important indicator to look at is the Market Value to Realized Value (MVRV) ratio, which analyzes both long and short positions. MVRV shows that sellers are in a more favorable position, indicating increased selling pressure in the market.
Additionally, a closer look at market depth shows significant trading activity around the $0.116 level. Around 31.42 billion DOGE were previously purchased at this price, and there are currently around 75 million DOGE for sale. This strong selling pressure solidifies $0.116 as a key resistance level, meaning the price may struggle to break above this area.
🛡️DOGE Price Outlook: A Bull Run May Be Far Away
Dogecoin is currently trading at $0.105, within a falling wedge pattern. For a bullish reversal to form, the coin needs to consolidate at $0.108. If this support holds, the next target would be $0.118, a key resistance level that could pave the way for further upside.
However, strong selling pressure around $0.116 could halt any potential upside move. If Dogecoin fails to sustain the current support at $0.094, the price could drop to $0.077, marking a 25% correction.
On the other hand, if Dogecoin can turn $0.108 into a solid support level, the potential for a breakout increases. In this bullish scenario, Dogecoin could overcome the bearish outlook and aim for a long-term price of $0.172, representing a 55% gain.
