Originally published on: December 11, 2024
Dogecoin’s recent rally to $0.50 may be imminent as analysts believe its ‘overbought’ conditions are cooling down. After a significant breakout in early November, Dogecoin has been trading in a narrow range between $0.35 and $0.48 for the past four weeks. Despite a recent price correction leading to a bearish trend shift, one analyst sees potential for another uptrend based on key technical indicators.
Trader Tardigrade, a crypto pattern analyst, noted that Dogecoin’s daily RSI has reset after a strong overbought signal, hinting at a possible breakout above $0.50 in the coming days. Additionally, data from Santiment suggests a bullish signal with DOGE’s ‘mean dollar invested age’ down 31% in eight weeks, indicating dormant coins returning to circulation.
While the long-term trend for Dogecoin remains bullish, it may experience a drop to collect liquidity before a higher high is achieved. Analysts predict potential lows at $0.34 and $0.32 before the next bullish leg up. Similar patterns from March 2024 indicate a retest of the 50-day EMA and a drop to these levels before the next upward move.
This article serves as analysis and does not offer investment advice. Readers are encouraged to conduct their own research before making any investment decisions. Don’t miss out on potential opportunities – subscribe to the Markets Outlook newsletter for weekly insights and updates.
