Dogecoin has entered a technical correction after surging to a multi-month high on Nov. 6 following Donald Trump’s election. Dogecoin (DOGE), the largest meme coin, fell to $0.1930 on Nov. 7, down 12% from its year-to-date high. A 10% to 19% drop from a local peak is known as a local correction.
However, DOGE has been one of the best performing cryptocurrencies over the past few days after surging 140% from its August lows.
Most of these gains come as crypto traders remain bullish on Trump’s victory and its impact on Elon Musk, his biggest supporter. Now that Trump has won, Musk is expected to take on a role in the Department of Government Efficiency. He is also likely to be a key crypto promoter in the administration.
Dogecoin has a number of strong fundamental and technical factors that could push its price higher in the long term. Data shows that DOGE futures open interest has increased to $1.62 billion, its highest level since April of this year.
Additionally, the coin’s trading volume on the spot market remains high. It rose to $6.4 billion on Thursday, its highest level in months, a sign that investors are buying it.
Will Dogecoin Price Hit $1?
Most importantly, Dogecoin has solid fundamentals that could help the coin rise to $1, a 426% increase from current levels.
On the daily chart, we see the DOGE price forming a descending wedge pattern from April to September of this year. This pattern consists of two trendlines, connecting lower lows and higher lows. A bullish breakout occurs when the two lines near their confluence.
DOGE price formed a golden cross pattern when the 200-day and 50-day moving averages made a bullish crossover on October 25. This pattern is typically followed by more gains.
It is currently forming a cup and handle pattern, another continuation sign. Therefore, more profits will be in play if DOGE rises above the cup high at $0.2285.
On the other hand, a drop below $01.425, the swing low on November 3, would invalidate the bullish view.