Dogecoin Price Action Faces Potential 30% Dip Before Potential 13x Rally

NAIROBI (CoinChapter.com) — Crypto analyst, Capt. Parabolic Toblerone highlighted a significant potential dip and recovery for Dogecoin ($DOGE). According to the analysis, a 30% discount in DOGE’s price might be imminent, pointing to a new reload area at $0.108. From this level, an impressive 13x increase is expected. Even from current levels, a substantial 8x growth could occur. This update advises disregarding a previous chart due to an error in the pitchfork settings.

Crypto analyst Max is calling for an impending “alt season,” forecasting a significant rise in altcoin prices. He compares this potential surge to Dogecoin’s past price action, which followed a similar bottoming pattern in Bitcoin. Max identifies a recent price movement, represented by a purple zone on his chart, as a potential sign of this altcoin bottom.

Doge Primed for 13x Rally After 30% Dip

As of May 23, 2024, Dogecoin (DOGE) is trading at $0.163, showing a 3.00% increase in the last 24 hours. The cryptocurrency’s market cap stands at $23.54 billion, securing its position as the 8th largest cryptocurrency by market capitalization. The 24-hour trading volume is $3.04 billion, reflecting a substantial 67.87% increase. The heightened interest and trading activity could indicate increased Dogecoin price action ahead.

The green histogram bars on the Moving Average Convergence Divergence (MACD) indicator signal underlying positive momentum for Dogecoin. This suggests potential bullish trends if current support levels hold. The Relative Strength Index (RSI) is at 51.97, close to the neutral mark of 50, indicating a balanced market sentiment.

Exponential Moving Averages (EMA) show the 50-day EMA above the 200-day EMA, which typically signals a bullish market sentiment. This crossover supports the idea that the medium-term trend for DOGE is positive.

Considering these technical indicators, if Dogecoin maintains support above the 61.8% Fibonacci level and the RSI remains stable, the price could test higher resistance levels near the recent high of $0.1748. However, traders should watch for fluctuations and potential resistance near these higher levels.

Dogecoin Bullish Breakout or False Hope?

Market data supports Dogecoin’s bullish outlook. Currently, 81% of holders are making money at the current price. Large holders control 63% of the total supply, showing strong backing. Dogecoin also has a high correlation with Bitcoin at 0.86, indicating it moves in tandem with the leading cryptocurrency.

Transaction data reveals significant activity, with $3.11 billion in transactions over $100,000 in the last seven days. This high volume suggests strong interest from major investors. Additionally, exchanges saw $329.89 million in inflows and $245.33 million in outflows over the same period.

Dogecoin’s holders are primarily long-term investors, with 66% holding for over a year. This long-term holding pattern suggests confidence in Dogecoin’s future performance. Transaction demographics are nearly evenly split, with 52% from the West and 48% from the East. Exchange inflows totaled $329.89 million, while outflows were $245.33 million in the last seven days, indicating active trading activity.