Key Insights:
- Analyst eyes an up move toward $3.69 to $4 if maintained strength.
- Futures market and technical indicators data pointed toward a mixed outlook.
Dogecoin (DOGE) shows signs of demand resurgence and gained bullish momentum. Followed by a sharp decline of over 15% last week, it held ground and maintained strength above the key support of $0.2200.
At press time, Dogecoin price was trading at $0.2549, exhibiting a decline over 2.30% in the past 24 hours. Its market cap stood at $37.73 Billion, ranked 8th in the overall crypto market.
Dogecoin Price Eyes Upside: Analyst Predictions Inside
A recent post on X by Trader Tardigrade highlighted that Dogecoin price has been moving up within a rising parallel channel and standing above the upper trendline.
Moreover, it sustains above the 78.6% Fib retracement level of $0.22 which supports the bullish recovery ahead.
Additionally, it forms a double bottom formation which may fuel a possible upward movement ahead. In case of market recovery, DOGE price could see a rally and reach the top of $3.69 followed by $4 in the next few weeks.
Furthermore, a post by Ali Charts revealed that the activity surrounding Dogecoin represents the growing market interest.
The daily active addresses transaction and whale movements showed a steady surge which favors the bullish thesis and could trigger a bullish leg up.
Elon Musk’s Latest D.O.G.E Move Raises Questions
The launch of Elon Musk’s ‘Department of Government Efficiency’ or “D.O.G.E.” together with Musk himself spurred market speculations.
Although the recent updates have no connection to the cryptocurrency token itself, the new D.O.G.E bolstered Musk’s connection with Dogecoin for future projects.
The community shares the belief that Dogecoin adoption as a payment currency for both U.S. Treasury services and other commercial transactions would be beneficial.
As market momentum keeps rising, traders anticipate it will reach its all-time-high if market conditions remain positive.
Dogecoin Price Prediction: What do the Charts Say?
Dogecoin’s price action remains at a pivotal moment, defined by a prolonged consolidation period above the key demand zone of $0.2000.
Over the past week, the memecoin has shed 20% of its value, yet it has managed to hold firm above the demand zone of $0.2000.
The Relative Strength Index (RSI) line was at 34 and was on the edge of registering a positive crossover that could fuel further recovery ahead.
The key support zones to watch out were $0.2200 and $0.2000, whereas the resistance zones were $0.2700 and $0.3000.
What Does Futures Market Data Suggest?
In the last 24 hours, the Open Interest (OI) shed over 5.40% to $2.35 Billion, highlighting a drop in long contracts. Amidst the price consolidation below the key EMAs and a decline in OI, it represents uncertainty among the market participants.
As traders withdrew capital, the drop in OI revealed caution about the potential recovery ahead. Furthermore, the OI-weighted funding rate dropped to the negative region, representing lower demand for the long contracts.
