After the Surge: What to Do Next?
DOGE was recently on fire, with prices soaring. But the good times didn't last long; in the last 24 hours, it has dropped a bit, causing some investors to feel uneasy. However, this coin still has the potential to reach historical highs.
Can DOGE reach new highs again? Or should we take it easy?
Dogecoin is getting closer to its historical peak. You see, it rose over 20% last week. But unfortunately, the price has recently pulled back by 5%, and the momentum has temporarily stalled.
Currently, DOGE is about $0.4213, ranking seventh in the cryptocurrency market.
An analyst named MilkyBull Crypto mentioned that DOGE is close to touching its historical peak. When asked if this coin could rise to $5, he said it's unlikely, but then again, anything is possible.
So, what will happen to DOGE next?
The trading volume has dropped by 15%. This is actually good news because when prices go down and trading volume shrinks, it often indicates that an upward trend is about to return.
However, looking at the sentiment indicators, people's confidence in Dogecoin seems a bit shaken, and there is a bearish outlook.
Let’s also check the open contracts, which are also falling alongside the prices, suggesting that a reversal might be coming soon.
However, the funding rates have increased, indicating that some investors are taking advantage of the low prices to buy Dogecoin.
Looking at the daily chart for Dogecoin, it is currently strolling within an upward channel, attempting to break through the top of this channel.
If it does break through, DOGE won't be far from its historical peak. But even if it breaks through, one must be cautious of a pullback; the price might revert back to around $0.367.
Additionally, DOGE may not reach its historical peak that quickly. Right now, people are too greedy, which is not a good sign. When greed runs rampant, prices often need to adjust.
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