- Doge is down 17% in the weekly charts.
- Analysts remain optimistic despite the decline of dogecoin, based on historic cycles.
In the past 30 days, there have been a lot of fluctuations in the crypto markets. BTC reached $69k during this time and dropped below $60k.
The meme coin has been the worst affected, causing concern amongst stakeholders. Analyst Michael Van de Poppe He has expressed his concerns through X.
“I’m scared about the #Altcoin markets.”
Doge’s Historical Cycles
Even though there are many voices that worry about meme-coins and their potential, very few analysts disagree with them. Dogecoin [DOGE].
Analysts are using DOGE’s history to suggest that the cycle is not random and DOGE may bounce. As an example, Vision Pulse He noted that Doge has a historical pattern.
“What if I told you #dogecoin is performing identically to last cycle? Take a look. Dogecoin rallied almost 400% to the .236 retracement in 2020, then fell 50% as the BTC.D rose. Look what is happening right now.”
Source: X
Analysts predict that DOGE’s recovery will be a surge of 400%, and a repeating cycle in 2020. The historical performance of the meme coin indicates that it will not be in decline for very long.
Another Analyst Javon Marks This analysis also pointed out that the DOGE cycle is likely to be repeated.
“Over the years, $DOGE (Dogecoin)’s Log Breakouts (displayed) have ALWAYS led to massive upsides and prices of, and have done so again with a break currently holding! Based on the previous 2 breakouts, each of these runs has consecutively gotten larger, and if we are to see this take place again, we can be looking forward to a more than $10 DOGE in a >7,200% Bull Run.”
Source: X
Doge price chart:
Doge’s price was $0.107 as I write this, following a daily chart decline of 4.97%.
The memecoin also has a weekly trend that shows a decline of 17.86% after one month. In the same way, it’s trading volume fell by 20.48% in 24 hours to $713.6M.
Source: Tradingview
AMBCrypto had concluded that DOGE’s momentum was strongly downward. The Relative Strength Index (RSI) was 34 and the RSI-based MA at 49.
The market has been dominated by sellers, which indicates that there is a higher level of selling pressure.
When the RSI enters oversold territory, it presents a potential buying opportunity. This could lead to a trend reversal by increasing buying pressure.
In addition, the direction movement index indicates a decreasing bearish momentum. The negative index, at 19,7 is above the positive indicator at 17,9 but the index itself is falling.
Similarly, the neutral indicator at 29 also sits over the negative index. It is possible that the price will reverse as it falls into an oversold area.
Santiment
Our analysis shows that the aggregated funding rates for exchanges is positive, at 0.005%.
It is possible that short-term traders pay long positions in order to maintain their position. This could indicate that traders expect the price to rise quickly.
Source: IntoTheBlock
Is your portfolio green? Have you checked out your portfolio? DOGE Profit Calculator
The outflow of large holders has also declined from an all-time high of 192,000,000 to only 42,000,000. The fact that the largest Dogecoin investors are not disposing of their coins shows they have confidence in an eventual trend change.
If DOGE is able to close above the crucial support level of $0.105, on the daily charts, then the meme coin will attempt to reverse the trend and challenge the significant resistance level of $0.13.
“This article is not financial advice.”
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Source: ambcrypto.com
