Dogecoin is about to test its historical peak, but there may be obstacles ahead.

  • After a week of significant rises, DOGE's daily chart has turned red.

  • The Fear and Greed Index suggests a potential sell-off.

After a week of significant rises, the price of Dogecoin [DOGE] has fallen in the past 24 hours, disappointing investors. Nevertheless, the memecoin still has the hope of testing its all-time high.

Will DOGE set a new record, or will it leave investors wanting more?

Will Dogecoin test its historical peak?

According to CoinMarketCap data, DOGE's price rose by more than 20% last week. In the past 24 hours, with a 5% correction in the memecoin's price, the upward trend has declared an end.

As of the time of writing, the memecoin is trading at $0.4373, making it the seventh-largest cryptocurrency.

Meanwhile, renowned cryptocurrency analyst MilkyBull Crypto tweeted that DOGE is nearing its all-time high.

Interestingly, a user on X commented on the post, asking about the likelihood of DOGE reaching $5. MilkyBull Crypto replied that it is unlikely, but the comment also noted that anything can happen.

DOGE's next move

Meanwhile, DOGE's batch trading volume has decreased by 15%. This is good news, as declining trading volume during a price drop typically indicates a reversal of the bullish trend.

However, its weighted sentiment has declined, indicating a rise in bearish sentiment around Dogecoin.

Another optimistic indicator is the open interest, which has decreased alongside the price, suggesting a trend reversal may occur soon.

However, DOGE's funding rates are rising, indicating that derivatives investors are actively buying the memecoin at a discount.

AMBCrypto's observation of Dogecoin's daily chart shows its price is moving within an upward channel, currently testing the resistance level of the pattern as of the time of writing.

The MA Cross indicator shows a clear bullish advantage in the market, indicating a successful breakout. If this happens, then DOGE testing its ATH may soon become a reality.

Nonetheless, even if the memecoin surpasses its ATH, there is still a possibility of correction afterward.

If price discovery occurs, investors may see DOGE drop to $0.367 after reaching a new high.

It is worth noting that DOGE may not test its ATH anytime soon. This seems to be the case as the Fear and Greed Index enters the 'Extreme Greed' phase.

Whenever this happens, it indicates a high likelihood of price adjustment.