Dogecoin To Double Its Price If This Barrier Breaks, Analyst Predicts
November 29 2023 - 9:00AM
NEWSBTC
An analyst has explained how Dogecoin breaking the $0.087 barrier
could open the path to DOGE price levels nearly double the recent
ones. Dogecoin Has Three Important Lines Converging At $0.087 Right
Now In a new post on X, analyst Ali has discussed what the weekly
chart of DOGE is looking like right now in terms of some important
historical lines. In particular, the levels of interest here are
the 100-week EMA, 200-week EMA, and 0.786 Fibonacci. A “moving
average” (MA) refers to an analytical tool that calculates the mean
of any given quantity over a specific period of time, and as its
name implies, it moves in time and changes its value as the
quantity fluctuates. Related Reading: Bitcoin Bull Run Is Only Just
Starting, According To This Metric This basic tool is quite useful
as it smooths out the curve by removing local fluctuations, making
a study of long-term trends easier to perform. In the context of
the current topic, though, a normal MA isn’t of focus, but rather a
modified form called the exponential moving average (EMA). The EMA
works like the usual MA, except it places a greater weight on the
most recent readings of the quantity. What this means is that the
older the reading, the less weightage it has in the metric, so the
line’s changes reflect the latest price direction more strongly.
Now, here is a chart that shows the trend in the 100-week and
200-week EMAs for Dogecoin, as well as the weekly price curve of
the meme coin: Looks like the asset's weekly value has been
interacting with these lines recently | Source: @ali_charts on X As
is visible from the above graph, these two Dogecoin EMAs have
approached each other recently and have converged into a narrow
range around the $0.087 level. In the past, these two EMAs of the
cryptocurrency have posed resistance to the price and it appears
that the weekly chart of Dogecoin has been struggling with them
again, as it has been finding rejection here during the past three
weeks. These two lines aren’t the only ones converging near $0.087,
however; it would appear that the 0.786 Fibonacci level is doing
the same. The Fibonacci levels listed in the chart are some ratios
derived from the famous Fibonacci series. In this series, dividing
any number (except for the first few) by its succeeding number
always gives a ratio of about 0.618. The square root of this number
is 0.786, which is the level the analyst has marked here. Related
Reading: XRP, BNB Among Altcoins Losing Correlation With Bitcoin:
Data Dogecoin thus has a major wall at $0.087, made up of the
convergence of all these historically significant lines. “Breaking
past this barrier could open the gates for DOGE to nearly double
its price, aiming for a target of $0.14,” explains the analyst.
DOGE Price Dogecoin has observed a surge back above the $0.080 mark
during the past day, as the below chart shows. It now remains to be
seen if the coin will go on to retest this $0.087 level that might
be so crucial for the coin. DOGE has registered some rise in the
last 24 hours | Source: DOGEUSD on TradingView Featured image from
Kanchanara on Unsplash.com, charts from TradingView.com
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