Following a similar rally in the cryptocurrency market, DOGE prices nearly doubled after bottoming out at $0.0491 in June 2022.
On April 20, DOGE traded at a peak of $0.0942, up about 94% from last year’s low. However, despite the impressive recovery, the price is still 88% below the all-time high of $0.76 reached in May 2021. Therefore, DOGE is far from a clear bullish reversal on longer time frames.
3-Day DOGE Price Chart | Source: TradingView
DOGE about to reverse bullish?
The price of DOGE will soar more than 23,000% in 2021, mainly due to the full support of Elon Musk. Ironically, DOGE peaked again after Musk called it a “hustle” (referring to a very active deal) during an appearance on Saturday Night Live in May 2021.
Prices have entered a long bearish cycle in anticipation of policy tightening by the Federal Reserve (Fed), leading to lower real interest rates in 2022 and 2023. Additionally, the sell-off in DOGE was exacerbated by the collapse of many leading cryptocurrency firms such as Terra (LUNA), Three Arrow Capital, FTX, and many others.
In October 2022, the price recovered 100% despite a multi-month downtrend. The move coincides with Musk’s takeover of Twitter, raising hopes that DOGE will become the social media platform’s official payment token.
Source: TradingView
As of April 2023, Musk has yet to add a DOGE payment option on Twitter. Even so, he quickly replaced the platform’s iconic “blue bird” logo with a meme of the official Dogecoin mascot Shiba Inu earlier this month. Following the news, the price of DOGE jumped by 40%.
Fundamentally, speculation could help DOGE maintain its year-to-date gains. But it’s still 700% away from its all-time high, a goal only possible if altcoins gain wider acceptance, for example as a payment method on Twitter.
DOGE Price Technology
According to fractal analysis (a now-recurring pattern), Dogecoin’s prospects for a bullish reversal depend on staying above two key weekly exponential moving averages (EMAs).
Notably, DOGE price is attempting to close above the 50-week SMA near $0.0917 (red wave) and the 200-week SMA near $0.0895 (green wave). This is similar to the sideways movement and breakout attempt that preceded the 30,000% rally from April to November 2020.
Weekly DOGE Price Chart | Source: TradingView
DOGE is unlikely to grow 30,000% in 2023 due to conflicting fundamentals. But if the Fed adjusts interest rates or adds a Dogecoin payment option on Twitter, the meme coin could surge to an all-time high of $0.76 in 2023.
Conversely, a reversal of the aforementioned EMA has the potential to trigger a classic continuation setup known as an ascending triangle.
The pattern occurs on a chart when the price fluctuates between the support of an ascending trendline and the resistance of a horizontal trendline. Triangles are usually resolved after a breakout in the direction of the previous trend.
Due to the previous downtrend, the DOGE Ascending Triangle appears to favor the bears, with an eye for downside targets of length equal to the maximum height of the pattern at a potential breakout point.
Weekly DOGE Price Chart | Source: TradingView
This puts DOGE’s year-end price target in the range of $0.0363-0.0469, which is 45-60% below current prices, respectively.
- Lack of stablecoin regulation could drive issuers out of the US
- Dogecoin (DOGE) Could Hit New Yearly Highs, Here’s Why?
- FTX will acquire all assets of the Ren protocol, including Bitcoin and Dogecoin
front page
As reported by Cointelegraph
