The price of the popular meme-inspired cryptocurrency Dogecoin (DOGE) has seen intense volatility over the past month. DOGE fell sharply after a failed breakout before finding support at a key technical level.
According to the data, Dogecoin surged in early December, breaking out from an ascending parallel channel where it had been trading. The breakout propelled Dogecoin to a local high of $0.108 on December 11th. However, the rally was short-lived. Over the following weeks, the price retreated as quickly as it had spiked.
At press time, Dogecoin had plunged to a low of $0.08094. However, DOGE has surged 5% from its 24-hour low of $0.07681. The sell-off appears to have been driven by profit-taking after the overheated rally as well as weakness in the broader cryptocurrency market.
Also read: VeChain Is A Top Pick For 2024, Analyst Says VET Can Hit $1.14
However, Dogecoin managed to bounce to a critical support level near the $0.074 mark. The rebound came right at the rising trendline support of Dogecoin’s previous ascending channel, underscoring the technical relevance of this price zone.
Will DOGE climb to $0.1?
Still, analysts caution that there are few signs of strength for Dogecoin over the near term. The Relative Strength Index (RSI), a momentum indicator used to gauge asset price trends, remains below the 50-neutral mark after peaking above 80 in early December, when Dogecoin was overbought. Readings below 50 typically indicate negative momentum and the absence of a sustainable price bottom.
Also read: Shiba Inu: Boldest SHIB Price Prediction For 2024
With the RSI not yet oversold, traders may look for more sideways consolidation and potential retests of support around the $0.074 mark before Dogecoin mounts a lasting recovery. Volume trends also remain lackluster despite Tuesday’s intraday spike, indicating caution among buyers.
According to the experts at Changelly, Dogecoin is likely to reach $0.1 in February 2025. However, it all depends on the overall market conditions.
Credit: Source link
