- Despite the recent price uptick, DOGE’s bearish sentiment remained dominant.
- The RSI was in the overbought zone, hinting at a price correction.
Dogecoin [DOGE], the largest meme coin, performed well in terms of its price action over the last few days. As a result, investors’ expectations around the coin also witnessed a rise.
Dogecoin exceeds expectations
Dogecoin’s value moved in double digits in the last seven days, when the token’s value shot up by more than 20%, according to CoinMarketCap. In the last 24 hours alone, it witnessed a price hike of over 3%.
At press time, DOGE was trading at $0.1706 with a market capitalization of over $24.4 billion.
Though DOGE’s price action was bullish, market sentiment around the meme coin turned bearish last week. Its Social Dominance also declined, hinting that not many people had discussed DOGE in this time frame.
Additionally, DOGE’s trading volume dropped, indicating that investors were less interested in trading the token at the time of the report.
Source: Santiment
Nonetheless, things on the derivatives front remained optimistic. Buying pressure was dominant in the market as DOGE’s Binance Funding Rate was green at press time.
The meme coin’s Open Interest also rose alongside its price – a high chance that the current trend would continue.
Why Dogecoin might touch $1
On the 8th of March, Ali, a popular crypto analyst, tweeted that the meme coin was entering a pattern at press time, which has historically resulted in bull rallies.
To be precise, DOGE’s price entered parallel channels in 2016 and 2020.
On both occasions, the meme coin’s value surged when it broke from the pattern. So, if the growth proportion remains the same as in previous instances, DOGE’s price might reach $1 in mid-April.
To see what to expect from Dogecoin in the short term, AMBCrypto checked the meme coin’s daily chart. As per our analysis, the MACD displayed a clear bullish advantage in the market.
Read Dogecoin’s [DOGE] Price Prediction 2024-25
At the same time, the meme coin’s Chaikin Money Flow (CMF) was resting well above the neutral mark. This indicated that investors might witness a continued price surge.
However, the Relative Strength Index (RSI) was in the overbought zone, suggesting that selling pressure on DOGE might go up and, in turn, put an end to its bull rally.
Source: TradingView
