Dogecoin Can Be Gearing for a Multi-Year Breakout

Despite the bounce back of the broader crypto market in 2023, memecoins have delivered a subdued performance. After dropping a few ranks recently, memecoin DOGE is now eyeing for a breakout on the multi-year chart.

Popular crypto analyst Ali Martinez stated that Dogecoin is nearing the apex of a multi-year descending triangle formation.

A weekly candlestick closure above $0.0835 might initiate the start of a new bullish run for $DOGE, possibly heading towards $1. However, investors need to warrant caution concerning the $0.0482 support; any indications of vulnerability around this level could result in a new yearly low, he added.

As of press time, Dogecoin is trading 1.18% up at a price of $0.058 and a market cap of $8.28 billion. The recent overselling observed in DOGE over the past few months could position it for a robust comeback, potentially setting the cryptocurrency up for a strong finish to the year.

Dogecoin Price Prediction

Relying exclusively on technical indicators, numerous analysts anticipate an imminent recovery for DOGE.

The relative strength index (RSI) has nearly touched the 30 mark once more, following nearly two months spent below 50, often dipping below 40 or even lower during this time.

Moreover, DOGE’s 30-day exponential moving average (EMA) has remained notably below its 200-day average for several months, signaling that the coin is substantially undervalued and poised for a potential uptrend.

However, investors also need to be cautious as Dogecoin has been constantly losing support hinting at the strong grip of the bears. Recently, it broke down under the crucial support level of $0.60.

Furthermore, the prevailing sentiment indicates that whales are more inclined to offload the token rather than accumulate it, as evident from recent substantial transfers.

Additionally, a significant indication of weakness lies in the declining 24-hour trading volume of DOGE, plummeting from a peak of $9 billion in November last year to approximately $175 million today. This decline serves as yet another testament to the waning market interest in the coin.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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.