Is DOGE leading the meme coin supercycle?

Is DOGE leading the meme coin supercycle?
Is DOGE leading the meme coin supercycle?

Dogecoin Price Analysis: This week, the cryptocurrency market witnessed less selling pressure as Bitcoin stabilized above the crucial $60,000 mark. This consolidation has led to less volatility in most major altcoins, including Dogecoin. While signs of recovery have yet to fully develop, Dogecoin price is holding above multi-month support and forming a reversal pattern, suggesting a potential for a significant recovery.

Also read: Dogecoin Price: DOGE Recovers from Critical Support, Bullish Momentum Builds

Dogecoin Price Analysis: Bull Flag Sets New Recovery Trend

Dogecoin Price Analysis | Tradingview

During the June market correction, Dogecoin price experienced a significant decline, falling from a high of $0.165 to a low of $0.113, representing a loss of 31.6%. Despite this decline, the daily chart shows the formation of a well-known bullish continuation flag pattern.

Under the influence of this pattern, the coin price is actively oscillating within two trend lines, trying to regain momentum to the prevailing trends, according to the theory. Dogecoin price is currently trading at $0.127, with an intraday gain of 0.22%, while the market capitalization is $18.4 billion.

Amid relief in the crypto market, DOGE price is attempting to break the immediate resistance of $0.129, which coincides with the 200D EMA. A successful breakout could lift the asset by 10% before challenging the key sloping resistance of the flag pattern.

A possible breakout from the flag would be the required signal for the resumption of an uptrend, helping Dogecoin surpass the high of $0.228.

Also read: Dogecoin (DOGE) lags meme coins: What to expect?

In a recent tweet, crypto analyst KALEO provided insights into the historical performance and future potential of Dogecoin ($DOGE). Dogecoin has been trending sideways or down for about 9.5 years, with two significant upside moves: a 6000% increase from the lows and another with a 30,000% increase.

Currently, the duration of the sideways movement since the last all-time high (ATH) is similar to previous periods before major breakouts. Each of these moves lasted about 8-9 months after Bitcoin’s halving before Dogecoin started to rise. Since only two months have passed since Bitcoin’s last halving, KALEO suggests that a breakout could occur between December and February.

So, the long-term trend could see a sideways correction or a stronger correction, but the overall trend remains bullish and analysts are convinced that we are in a meme coin supercycle.

Technical indicator

  • EMAS: A bearish crossover between the 50-day and 100-day exponential moving averages could accelerate the bearish momentum for a sustained consolidation.
  • RSI: The daily slope of the Relative Strength Index (RSI) fluctuates around 40% and reflects a continued pessimistic sentiment among market participants.

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