Down 25% or up 55%: what to expect from Dogecoin (DOGE)
The price of Dogecoin (DOGE) has been declining for several months in a row. However, the descending wedge formed on the chart hints that a bullish reversal may be just around the corner.
Let's find out with the help of technical indicators and onchain metrics what to expect from DOGE in the coming weeks.
Dogecoin is leaning in favor of the bears
The current market sentiment around Dogecoin remains bearish. The difference between the market value and realized value (MVRV) on long and short positions - a key metric for assessing investor behavior - shows that sellers are in a more favorable position than buyers. This often indicates increasing selling pressure.
Analyzing the depth of the market shows that significant trading activity is taking place around $0.116. Previously, about 31.42 billion DOGE was bought at this level. Now there are approximately 75 million DOGE for sale.
Thus, $0.116 becomes a key resistance level for Dogecoin. Intense selling at this price level indicates that it is likely to continue to serve as a significant barrier.
DOGE price outlook: the rally is still a long way off
Dogecoin is currently trading at $0.105 within a descending wedge. To start a bullish reversal, the coin needs to consolidate at $0.108. If successful, the next target will be $0.118, a key resistance point that could open the way to further upside.
However, strong selling pressure at $0.116 could lead to a decline. If Dogecoin loses its current support at $0.094, its price could fall to $0.077, which would imply a 25% correction.
On the other hand, if Dogecoin is able to turn $0.108 into support, it could be the beginning of a breakout. In this case, the cryptocurrency has the potential to refute the bearish scenario and target $0.172 in the long term, which represents an upside of 55%.
