Dogecoin is expected to break through $0.50 in the short term! These three key factors will drive the price up by 30%
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Dogecoin (DOGE) experienced a strong rebound last week after two weeks of consolidation, with the current price hovering around $0.40. With changes in technical indicators and social sentiment, some analysts believe Dogecoin may break the next psychological barrier of $0.50. So, what drives Dogecoin to increase by 30% in the short term? Here are three key factors:
1. The potential for price increase from a reversal in social sentiment
The social sentiment index for Dogecoin is currently low, having dropped to -0.60, far below the peak in March. This indicator mainly focuses on the frequency of mentions on social media. When the cryptocurrency market sentiment is sluggish, savvy investors often take advantage of the low points to accumulate. Historically, Dogecoin has experienced price surges during low points in social sentiment. For example, in November last year, when social sentiment was low, Dogecoin rebounded strongly.
2. MVRV-Z score shows Dogecoin is still cheap
The MVRV-Z score is an indicator used to measure the market value of Dogecoin relative to its actual value. According to Glassnode data, the current MVRV-Z score for Dogecoin is 2.40, down from 2.70 in November. This indicates that Dogecoin's price is still below its actual value, suggesting potential for an increase. Especially when the MVRV forms a cup and handle pattern, it usually signals a price rebound.
3. Technical signals suggest greater gains
From a technical perspective, Dogecoin is forming a bullish triangular flag pattern and has broken through the 50-period moving average, indicating a bullish market sentiment. If Dogecoin breaks through the key level of $0.3986, the target price could reach $0.48, which would be the largest fluctuation since December, ultimately pushing the price above $0.50, with a potential increase of 30%.
Conclusion: Dogecoin may break the $0.50 barrier
In conclusion, the reversal of social sentiment, the low MVRV-Z score, and strong technical signals could all be key factors for Dogecoin to break through $0.50 in the short term. However, if the price falls below the key support level of $0.34, this upward expectation may be shattered. Therefore, investors should stay vigilant and closely monitor market changes.
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