Originally published on: December 11, 2024
Dogecoin has been on a rollercoaster ride lately, with a 208% surge in early November followed by weeks of consolidation. However, analysts are now eyeing a potential uptrend for DOGE as overbought conditions cool down.
A recent price correction led to a bearish trend shift for Dogecoin, but one analyst believes that the cryptocurrency could be gearing up for another rally. Trader Tardigrade, a crypto pattern analyst, pointed out that Dogecoin’s daily RSI has reset after showing strong overbought signals, hinting at a possible breakout above $0.50 in the coming days.
Additionally, data from Santiment indicates that DOGE’s “mean dollar invested age” is flashing a bullish signal, with dormant coins returning to circulation. This could fuel further upside momentum for Dogecoin in the near future.
While the long-term trend remains bullish, some consolidation may be in store for Dogecoin before it makes its next move higher. A potential drop to gather liquidity between $0.32 and $0.34 could precede a higher high value, similar to past price patterns observed in March 2024.
Analysts are closely watching key technical indicators, including the 50-day EMA and the RSI, for clues on Dogecoin’s next move. A retest of the 50-day EMA and a drop to $0.34 and $0.32 may be on the horizon before DOGE resumes its bullish trajectory.
As always, readers are reminded that investing in cryptocurrencies carries risks, and it’s important to conduct thorough research before making any trading decisions.
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