Dogecoin price has moved into a technical correction after soaring to a multi-month high on Nov. 6 following Donald Trump’s election.
Dogecoin (DOGE), the biggest meme coin, retreated to $0.1930 on Nov. 7, down by 12% from its highest level this year. A drop of between 10% and 19% from a local top is known as a local correction.
Still, DOGE has become one of the best-performing cryptocurrencies in the past few days after soaring by 140% from its lowest in August.
Most of these gains happened as crypto traders remained optimistic about a Trump victory and its implication for Elon Musk, its biggest backer. Now that Trump has won, Musk is expected to take a role in the Department of Government Efficiency. He will also likely be a key crypto promoter in the administration.
You might also like: Coinbase CEO calls US election 2024 a ‘huge win for crypto’
Dogecoin has some strong fundamentals and technicals that could push it higher in the long term. Data shows that DOGE’s futures open interest has jumped to $1.62 billion, its highest level since April this year.
Dogecoin futures open interest | Source: CoinGlass
Additionally, the coin’s volume in the spot market has remained at an elevated level. It jumped to $6.4 billion on Thursday, the highest level in months, a sign that investors are buying it.
Will Dogecoin price hit $1?
DOGE chart by crypto.com
Most importantly, Dogecoin has strong fundamentals, which could help it jump to $1, a 426% from the current level.
On the daily chart, we see that the DOGE price formed a falling wedge pattern between April and September this year. This pattern is made up of two trendlines, which connects the higher lows and lower lows. A bullish breakout happens when the two lines near their confluence levels.
DOGE price has formed a golden cross pattern as the 200 and 50-day moving averages made a bullish crossover on Oct. 25. This pattern is usually followed by more gains.
It is now in the process of forming a cup and handle pattern, another continuation sign. Therefore, more gains will become valid if DOGE rises above the upper side of the cup at $0.2285.
On the flip side, a drop below $01425, its lowest swing on Nov. 3 will invalidate the bullish view.
You might also like: TRUMP, MAGA, and other Trump-themed tokens crash after election day
