- DOGE has been a major beneficiary of BTC’s latest cycle, thriving despite its high-risk, high-reward status.
- Now, as the market takes a U-turn, DOGE could still continue to benefit.
As a seasoned researcher with a penchant for deciphering cryptocurrency trends, I find myself intrigued by the current trajectory of Dogecoin (DOGE). Over the past year, I’ve witnessed this meme-inspired coin ride the rollercoaster of market cycles, thriving despite its high-risk, high-reward status. Now, as the market takes a U-turn, DOGE could still continue to benefit, much like a phoenix rising from the ashes.
In the last twelve months, meme-based cryptocurrencies like Dogecoin [DOGE] have garnered significant attention and become the main focus. Notably, Dogecoin has seen a remarkable weekly increase of 10%.
Based on a recent report from AMBCrypto, there’s a lot of optimism about DOGE. Traders are aiming for a short-term goal of $0.16. But it’s important to note that a strong resistance barrier is located near $0.20, a level DOGE hasn’t approached in more than 155 days.
Given that Dogecoin’s value often mirrors Bitcoin‘s [BTC], a concealed pattern spotted by AMBCrypto might offer the stability required for DOGE to withstand market fluctuations.
If conditions align favorably, this pattern may propel DOGE into a parabolic rally.
A short-term correction for DOGE may be inevitable
Previously, Dogecoin reached $0.14 during the surge in mid-July. However, after experiencing over 150 consecutive days of decline, Dogecoin has shown a remarkable resurgence, dismissing worries that it was being eclipsed by emerging meme tokens.
It appears that October has been particularly favorable for Dogecoin (DOGE), with its positive trend initially bolstered by Bitcoin (BTC). However, towards the end of the month, DOGE managed to record daily increases surpassing 5% consistently, which is significantly more than what BTC achieved.
Over time, it’s noticeable that towards the conclusion of each cycle, certain cryptocurrencies tend to see significant returns because money tends to move away from Bitcoin, particularly when it approaches riskier areas.
Dogecoin (DOGE) has undoubtedly profited significantly from this trend, successfully surpassing its earlier resistance at around $0.14, marking a new peak in its value.
Source : Coinglass
At the moment, the price stands at $0.1384, and given its previous high of $1.40, it was only natural for a brief correction to occur. This is even more likely considering that Dogecoin showed signs of being overbought based on multiple indicators.
With 84% of price movement in the last two weeks being upward, a trend reversal was imminent.
As I observe the current market trends, it seems that the next potential dip could occur near the previous resistance level of approximately $0.12. Just four days ago, there was a pullback coinciding with roughly 7 million Dogecoins entering the exchanges, which indicates a market that may be overheated and ripe for a correction.
Soon after, there was a buildup. Traders who deal on the spot market are watching for the next price drop, hoping for another upward trend. Consequently, Bitcoin’s next action is crucial as it significantly affects their plans. In simpler terms, the accumulation started quickly, and spot traders are waiting for the next decrease in price to potentially profit from a subsequent rise. The outcome of Bitcoin’s next move plays a significant role in their strategies.
Should you buy the dip?
If Bitcoin does not undergo a price change (specifically, a reversal), its current trend resembles the late-September phase where BTC encountered resistance at around $66K. This significant level is worth keeping an eye on by Dogecoin investors.
A BTC rebound could restore confidence in high-cap memecoins like Dogecoin.
As a crypto investor, I’ve learned that due to the high volatility of these digital assets, it could be prudent to hold off investing until the market shows signs of stability. From my perspective, this approach seems more rational and less emotionally taxing, given the unpredictable swings in the market.
From another perspective, Dogecoin’s ability to withstand recent market declines could lead Bitcoin investors to consider shifting their investments to Dogecoin. This is because Dogecoin has maintained positive growth, recording a 10% increase over the past week.
Source : IntoTheBlock
Over the past period following Bitcoin’s retreat from $69K, a significant number of major investors have been transferring over half a billion Dogecoins out of trading platforms.
It seems that both dealers and financiers are keeping faith in Dogecoin (DOGE), expecting it to reach around $0.14 in the near future and possibly surge up to $0.20.
As a crypto investor, I find myself buoyed by an underlying optimism, knowing that this temporary setback might just be a stepping stone towards greater gains in the future market cycle. Following AMBCrypto’s analysis, I view this current downturn as a short-term hurdle rather than a cause for concern.
Realistic or not, here’s DOGE market cap in BTC’s terms
Once Bitcoin regains bullish momentum, DOGE could be on track to hit $0.20 by the end of Q4.
For now, temporary profits can be seized since Dogecoin is still leading among popular meme coins, and this recent drop presents a convenient time for investors to jump in.
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2024-10-25 00:08