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With a lesser volume compared to past peaks, DOGE might end up trading between $0.18 and $0.22.
The performances of other memecoins might ensure that the price action remains conservative.
As a researcher with experience in analyzing cryptocurrency markets, I believe Dogecoin (DOGE) might end up trading between $0.18 and $0.22 in May 2024. The reason being, its volume is significantly lower compared to past peaks, and the performances of other memecoins could keep price action conservative.
Over the past month, Dogecoin [DOGE] experienced a decline of 16.27 percent in value. Yet, with May approaching on the horizon, there’s a possibility that historical trends may aid the coin in regaining some of those lost gains.
The price of DOGE has consistently increased in the fifth month during previous years. For example, in May 2021, Dogecoin saw significant growth, rising from $0.33 to over $0.52 within the span of just one month.
Prior to that, cryptocurrencies exhibited comparable trends in the years 2017 and 2019. However, in 2022, a memcoin failed to replicate this success due to the emergence of a bear market – specifically, the Terra Luna (LUNA) market downturn.
As a crypto investor looking back at the past, I recall that Dogecoin’s price remained stable during May 2023 as the market was still on its path to recovery. Now, considering the current trends and market conditions, it is difficult to predict with absolute certainty what will happen to Dogecoin in May 2024. However, we can keep an eye on various factors such as community sentiment, partnerships, and regulatory updates that may impact its price. Stay informed and stay prepared!
It’s not close
One point worth noting is the potential for a discrepancy between Bitcoin‘s (BTC) recent halving and Dogecoin’s subsequent price surge. The Bitcoin halving occurred only a few weeks prior, while Dogecoin didn’t show significant price movement until February 2021 following its last halving.
Seven months have passed since the occurrence of the four-year event. Should the memecoin repeat its behavior, a substantial rally may not materialize next month. Instead, the altcoin could hold off on making major strides until November.
As a financial analyst, I recognize that while historical data plays a significant role in understanding market trends, it doesn’t solely dictate price action. To expand upon this perspective, let me explain why examining on-chain data is valuable.
In the year 2021, Dogecoin’s price surge initiated with a trading volume exceeding $6 billion. At its highest point, the trading activity surrounding Dogecoin reached an impressive level of over $42 billion.
Memecoin battle may continue
At the moment of publication, Dogecoin’s trading volume amounted to $958.76 million. This figure signifies that the level of investor attention towards the token was significantly lower compared to what it was at that particular point in time. Nonetheless, this observation does not diminish the worth or significance of Dogecoin in any way.
Should a cryptocurrency initiate a bull market by the coming month, its trading volume should ideally increase by at least three to five times its present value to ensure significant price growth. If this condition is not met, the market may experience only modest increases or remain stable during May.
As a crypto investor, I must admit that reaching the astronomical heights DOGE did during the last bull market may be an unrealistic expectation this time around. The primary reason being, there are now numerous memecoins vying for liquidity in the market, which could potentially limit Dogecoin’s price surge. In a highly optimistic scenario, we might still see targets between $0.18 and $0.22.
Although the cautious forecast for Dogecoin’s price may hold true, it still has the capability to be a noteworthy cryptocurrency during this market cycle.
Is your portfolio green? Check the Dogecoin Profit Calculator
As a crypto investor, I believe that if the overall market conditions shift from consolidation to a bullish phase, Dogecoin (DOGE) could potentially surpass the $0.50 mark in the intermediate term. However, it’s essential to note that this is not a definitive prediction for the next few weeks. The market’s volatility makes long-term strategies more reliable than short-term ones.
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2024-04-27 10:15