After a week of sharp gains, Dogecoin (DOGE) is beginning to see a pullback on the daily chart.
The Fear and Greed Index shows that the market may be facing a sell-off.
While Dogecoin’s gains over the past week have been exciting, the price has pulled back by about 5% in the past 24 hours, leaving many investors a little disappointed. Nevertheless, the memecoin still has the potential to challenge its all-time high.
So can DOGE break the historical record, or will investors continue to wait?
Does Dogecoin have a chance to challenge its all-time high?
According to CoinMarketCap, DOGE rose by more than 20% last week. However, with the recent 5% correction in the past 24 hours, the rally has temporarily stopped. As of now, the price of DOGE is $0.4373, still ranking as the seventh largest cryptocurrency.
Cryptocurrency analyst MilkyBull Crypto also tweeted that DOGE is close to its all-time high.
Interestingly, one user X commented asking if DOGE could possibly break through $5. MilkyBull Crypto responded that this was unlikely, but he also said that the market is changing rapidly and anything can happen.
What will happen to DOGE next?
Currently, DOGE’s batch volume has dropped by 15%, which is a good sign for bulls because usually when prices are falling, a decrease in volume hints at a reversal of the bullish trend.
However, the market sentiment for Dogecoin has weakened, with some bearish sentiment signals emerging.
Another bullish sign is the decline in open interest, which is also declining as prices pull back, which usually means that the market trend may soon reverse.
However, it is worth noting that DOGE’s funding rate is rising, which indicates that derivatives investors are actively buying this memecoin at lower prices, showing their expectation of price increases.
According to the analysis of the Dogecoin daily chart, the price of DOGE is moving along an ascending channel and is currently testing the resistance level of the channel.
The MA Cross indicator shows that the market is showing a clear bullish trend, suggesting that a breakthrough is more likely. If the breakthrough is successful, DOGE is expected to challenge its all-time high (ATH) soon.
Still, even if Dogecoin breaks through its all-time high, it could still face a price correction afterwards.
If a price correction occurs, investors could see DOGE fall back to $0.367 after setting a new high.
It is worth noting that DOGE may not test its ATH anytime soon. With the Fear and Greed Index entering the “Extreme Greed” phase, things in the market do look a bit overheated.
Whenever the Fear & Greed Index is at these levels, it usually means there is a greater risk of a price correction.
