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.
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.
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