Dogecoin price has crashed this month, continuing a downward trend that started in December when it peaked at $0.4835. This decline has mirrored the performance of other altcoins, which have fallen as the fear and greed index moved to 35. Technicals like the MVRV and Fibonacci Retracement levels point to an eventual rebound.
Dogecoin Price Could Rebound After Hitting “Opportunity Zone”
Technicas suggest that the DOGE price may bounce back soon. For example, the market value to relative value (MVRV) indicator shows that the coin has moved to the opportunity zone. This is a highly popular indicator used to identify cycles by looking at the current price and comparing the market value and the relative value.
Santiment data shows that the 30-day MVRV indicator has moved to the lowest level since December last year. The last time it dropped to that level Dogecoin price jumped by 45% to a high of $0.4332 in December. A similar rebound would push the coin up to $0.3640. A break above that price would see it jump to the December high of $0.4332.
Meanwhile, Trader Tardigrade, a popular analyst on X, noted that the coin had movd to the “accumulation zone”. He believes that DOGE price goes parabolic whenever it moves downward from a consolidation. As shown below, the coin often bounces and goes parabolic. He expects that the coin will rebound and retest the resistance at $1.
Dogecoin Price Technical Analysis: The Contrarian View
The weekly chart shows that the value of DOGE has crashed in the past few months. This crash ended when the coin retested the crucial support level at $0.20, which was slightly above the key point at $0.2285, its highest level in March last year. This price action is known as a break and retest and is one of the most popular bullish continuation sign.
Dogecoin also retested the 61.8% Fibonacci Retracement level, which is often known as the golden ratio. This is a highly popular level where reversals happen. Most notably, the coin has formed a morning star candlestick, comprising a small body and two shadows. The morning star has a close resemblance to the hammer candle.
DOGE Coin Targets
The most likely DOGE price forecast is where the coin rebounds and retests the 38.2% retracement point at $0.3215, followed by the 23.60% point at $0.3836. If this happens, the coin will rise by 53% from the current level. A drop below the lower side of the morning star candle at $0.20 will invalidate the bullish view.
Frequently Asked Questions (FAQs)
Technicals suggest that the DOGE price may bounce back in the coming weeks as it moves into an opportunity zone. The MVRV indicator has moved to the lowest level since December last year.
The coin has also dropped to the 61.8% Fibonacci Retracement level and formed a morning star candlestick pattern. That is a sign that it will bounce back soon.
The coin may rebound to $0.48, the highest level in 2024. On the flip side, a drop below the support ar $0.20 will point to more downside.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/dogecoin-price-hits-opportunity-zone-will-doge-surge-45/
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