After Elon Musk updated his Twitter logo to a Shiba Inu dog on April 3, Dogecoin experienced a crazy week and reached a high of $0.105. The action sparked controversy among the meme coin community and resulted in a rise of nearly 30%.
Even if the price has dropped since then, it hasn’t decreased the outlook significantly.
What awaits Dogecoin at this point? Bears take over, Dogecoin drops
The impetus of Dogecoin seems to be diminishing after a stretch of significant rises. Two days in a row, the cryptocurrency’s 1-day timeframe has flashed red, indicating the beginning of a probable decline. This might be because there aren’t any interested buyers.
The daily relative strength index (RSI) for DOGE has entered its overbought zone, adding to the gloomy view and raising the possibility of a drop in the near term.
The $0.089 level, which acted as resistance during the upswing in January and February, may be reached after this pullback.
If the negative momentum persists, the Dogecoin price could crash into the 200-day Exponential Moving Average (EMA) at $0.082. Bears are known to profit from any reduction in buying pressure.
The support confluence between the horizontal line and the 100-day EMA at $0.080 could be reached if DOGE drops below this level.
Analyst Projects Gains in the Future
Meanwhile, independent analyst Crypto Kaleo sounds a bullisher note. He said on Twitter that the cryptocurrency is on track to break through a long-standing descending trendline resistance, which may drive up the price to $0.25, representing a significant 125% increase.
This forecast is predicated on the likelihood that buying pressure would rise, perhaps as a result of the current altcoin season storyline. If this occurs, the near-term resistance level at $0.097 might be broken, allowing for increased bullish sentiment.
The bearish argument would also be refuted by a significant turn of this resistance into support, as this level has been a difficult barrier for DOGE investors for a while.
In the best-case scenario, the price of Dogecoin might surge even higher and surpass the $0.111 resistance level, which would mark a full reclaiming of the coin’s December 5 high.
Only time will tell where Dogecoin will end at as the cryptocurrency market develops. But it’s undeniable that the cryptocurrency with meme-inspired branding is generating buzz among both investors and dealers.