Dogecoin Under The Microscope – Historical Data Points To Rebound
June 04 2024 - 3:49AM
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Dogecoin, the Shiba Inu-themed cryptocurrency that took the
internet by storm in 2021, has been on a rollercoaster ride in
recent weeks. After a week of corrections, DOGE seems to be clawing
its way back, and some analysts believe it might be gearing up for
a repeat of its past successes. Related Reading: Notcoin
Unstoppable! Token Soars Over 400%, Blazes New All-Time High Echoes
Of Bull Runs Past Hope for Dogecoin hinges on a recently identified
trend mirroring its behavior in 2016 and 2020. Back then, a similar
price pattern preceded significant bull runs that propelled DOGE to
new heights. This discovery has ignited a spark of optimism among
DOGE holders, with some analysts predicting a similar outcome in
the coming weeks or months. #Doge monthly : it’s just a symphony
!#dogecoin $DOGEUSD #XD #FTW #PeopleCurrency #ThisIsTheWay
@xpayments 𝕏Ð pic.twitter.com/bPiPcNTH3l — Olivier Ð 𝕏 (@Dark64)
June 1, 2024 Technically, things seem to be lining up for a
potential surge. The Chaikin Money Flow (CMF) and Relative Strength
Index (RSI), indicators used to gauge buying and selling pressure,
are both exhibiting positive trends, suggesting an increase in
investor confidence. Additionally, some analysts believe that if
DOGE manages to turn bullish, it could face its first resistance
level at $0.16, with a potential breakout leading it to $0.17.
Short-Term Blues And Bearish Whispers However, not all signs point
towards sunshine and rainbows for Dogecoin. Despite the recent
price uptick, the overall market sentiment surrounding DOGE remains
stubbornly bearish. This negativity is reflected in a significant
decline in weighted sentiment, an indicator that measures the
overall tone of social media conversations about the coin. Social
volume, which tracks the number of mentions DOGE receives online,
has also dropped in recent weeks, suggesting waning interest from
the community. Furthermore, short-term metrics like trading volume
and velocity paint a concerning picture. Trading volume, which
indicates the frequency of DOGE being bought and sold, has dipped
considerably over the past week. Dogecoin Price Prediction
Meanwhile, despite a recent stretch with 43% positive days and
relatively low volatility, technical indicators for Dogecoin are
pointing bearish. The current prediction forecasts a price drop of
over 13% by July 4th, reaching $0.135. Related Reading: Is This The
Ethereum Endgame? Investors Pull $3 Billion From Exchanges This
contradicts the high “Greed” sentiment of 73 on the Fear &
Greed Index, suggesting a potential disconnect between market
psychology and objective technical analysis. Featured image from
Carrie Glenn, chart from TradingView
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