Dogecoin, also known as Dogecoin or Dogecoin, is a cryptocurrency derived from the internet meme Doge. Dogecoin's popularity soared in 2019 due to the public support of technology tycoon Elon Musk, and it is classified as a 'meme coin' (memecoin), and is one of the top ten cryptocurrencies by market cap.
Recent Situation of DOGE
Despite the current stagnation in Dogecoin's price, investor sentiment remains generally positive. The Global Inflow/Outflow of Funds (GIOM) indicator shows that approximately 60.72 billion Dogecoins (worth 5.76 billion US dollars) are expected to be profitable.
This supply is expected to be obtained between $0.101 and $0.130, a range that has historically been a key support and resistance zone. The recent price drop of DOGE has sparked a lot of buying interest, further supporting this optimistic sentiment.
In addition, Dogecoin's macro momentum is heavily influenced by Bitcoin (BTC), as the correlation between these two cryptocurrencies is as high as 0.92. This correlation means that Dogecoin's price movement is closely related to the performance of Bitcoin. When Bitcoin experiences price changes, Dogecoin usually follows suit, albeit with varying intensity.
Bitcoin has recently experienced both consolidation and slight upward movements, and Dogecoin has maintained a similar trajectory. However, a decline in the price of Bitcoin could also suppress the rise of Dogecoin, making the performance of BTC a key factor in the recent trend of Dogecoin.
DOGE price prediction: The target is to break through.
The price of Dogecoin is currently holding above the key resistance level of $0.094. This level has provided a reliable foundation for price rebounds in the past. Despite multiple attempts, Dogecoin has yet to break through the resistance level of $0.118, resulting in a period of consolidation.
If DOGE successfully breaks through the resistance of $0.118, it will also mark the breakout of its descending wedge pattern. This move could trigger a 65% rebound, with the next target being $0.182. This price level represents a significant increase and restores people's confidence in DOGE's further growth potential.
However, the resistance levels at $0.130 and $0.118 have been tested multiple times in the past, making it difficult to overcome. If these two levels are not broken, it could lead to the price continuing to consolidate above $0.094. In this case, DOGE may struggle to gain upward momentum, leading to the failure of the bullish argument.
Summary
The recent trend of DOGE looks at bitcoin, and the future trend will depend on whether it can hold the key support level. Breaking through the major resistance area will be crucial to reversing the current downtrend.
It is worth mentioning that investing in cryptocurrencies is a high-risk activity. We need to carefully consider investment decisions, conduct thorough research, and risk assessments. At the same time, we also need to maintain a calm mind, not be swayed by market fluctuations, and make decisions that align with our own investment strategy.