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Dogecoin may rise 15% before investors worry about sell-off.
Dogecoin rose 30% between May 1 and 4.
DOGE may surge 15% to $0.181 soon.
A correction following this initial move might cause a severe drop to $0.116.
Dogecoin (DOGE) price may reverse over a longer timeline. It might cause a short-term uptrend.
Crossroads for Dogecoin
On May 1, dogecoin price fell below the March 20 swing low, breaking the bullish market structure. This implies market uncertainty, which might reverse the upswing or foreshadow a bull market downturn that restarts the climb.
Due to this market structure breach, DOGE might sweep the $0.181 weekly resistance level and correct to the $0.116 support floor or directly fall to $0.116 in the following days.
The three-day Relative Strength Index (RSI) has dropped below the 50 mean level for the first time since February 24, and the Awesome Oscillator is about to drop below zero. On a high period, both momentum indicators indicate decreasing bullish momentum.
Dogecoin price is expected to fall owing to a probable mean reversion play after a parabolic spike in March and liquidity below the equal lows created just above the $0.116 support floor.
Dogecoin's price will likely fall in the next weeks as Bitcoin's prognosis remains unclear.
DOGE's on-chain measurements indicate relief.
The IntoTheBlock Global In/Out of the Money (GIOM) indicator reveals 82.67% of investors are “in the money.” However, the $0.152–$0.143 support zone is tiny and unlikely to hold if selling pressure spikes.
Thus, 676,000 addresses bought 31 billion DOGE at $0.116, the following important milestone. If the price drops below their entry level, these investors will purchase more, creating a support zone.
GIOM also indicates a weak immediate resistance zone at $0.176. DOGE bulls face a ceiling of $0.182–0.671, where 751,000 addresses that bought approximately 13.5 billion DOGE are “out of the money.” If DOGE reaches breakeven, these investors may sell.
