Dogecoin ($DOGE ) is trading around $0.40, but bullish signs indicate that the meme currency is about to break above the threshold soon. Although it failed to break above the 21-day moving average (DMA), fundamentals suggest that the stock could soon break above that level.
Dogecoin price is moving sideways after the coin broke below a short-term trendline. This has led it to probe crucial resistances, particularly the 21DMA, which has limited upside potential. The fact that this resistance is still showing issues indicates that the price could be at risk of a more severe pullback in the near term. If this happens, the next key support level to watch would be the 50DMA at around $0.33, a price level that coincides with important support areas from 2021.
Source : TradingView
Dogecoin Rebound Signals
However, there are some signals that could signal a bounce, continue the positive trend, and form a very strong price rally. One of the most inspiring facts is that funding rates in DOGE futures markets will be quite low. Futures funding rates were seen dropping to 0.01%, as reported by Coinglass, from the highs earlier this month of over 0.09%. This drop in funding rates indicates that much of the exuberance that can lead to big price swings and is often followed by heavy selling, has been eliminated from the market.
Source : Coinglass
Additionally, the currency is still very popular in the media. News of Elon Musk and Vivek Ramaswamy’s plans for the Department of Government Efficiency (DOGE) has kept DOGE in the news. Such moves could bring more attention to the cryptocurrency, especially with Trump’s team set to take effect in January. If more crypto-friendly policies are put in place, Dogecoin’s role in the market could only grow, which will only attract more investors.
Source: Department of Government Effectiveness
Historical Cycles and Potential of Dogecoin
The first major Dogecoin resistance level to watch is the 2021 high at $0.73905. This level is the highest the cryptocurrency has ever traded and getting back to this price level will be a big boost. But what most analysts believe is that Dogecoin isn’t stopping there. With a new pro-crypto administration set to take office in 2025, hopes are rising for a market recovery that could also benefit Dogecoin.
Dogecoin’s performance also seems to show promising results when looking at its historical data. So far, DOGE has experienced three different market cycles from 2014 to the present, and all of them have seen sharp price fluctuations. Analysts have used Fibonacci extensions to estimate previous market cycles and believe that DOGE can reach $3 in this cycle. However, considering DOGE’s meteoric rise in 2021, some analysts expect the coin to climb to $10 per unit, a rather aggressive target implying a market cap of over $1 trillion.
Source : TradingView
While a $10 Dogecoin seems pretty unlikely today, it's not completely implausible. If Dogecoin is to maintain this outperformance, it's entirely possible that it could reach a market cap in the hundreds of billions of dollars.
The cryptocurrency market as a whole is also a growth indicator, as we will see in the following analysis. As the attention towards digital assets continues to grow across the world and new regulations that could be more favorable to cryptocurrencies are on the horizon, the environment is ripe for further gains. DOGE is one of the most well-known and popular meme coins and will be greatly impacted by this change. The token’s presence in the market is stable and will remain so, with more and more investors attracted as more people use cryptocurrencies.
Conclusion
Although Dogecoin has some short-term issues, the long-term picture is positive. This is due to the fact that DOGE futures funding rates are low, media attention is high, and the overall cryptocurrency market is bullish. The coin could reach higher highs compared to historical prices than in 2021, so it is crucial to keep an eye on it within the meme coin market. The future looks bright for Dogecoin, and people are curious to see how high the coin price can go.
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