After a week of sharp gains, the price of Dogecoin [DOGE] has fallen over the past 24 hours, disappointing investors. Nevertheless, the memecoin is still expected to test its all-time high.
Will DOGE set new records or will investors be left expecting more?
Is Dogecoin about to test its all-time high?
According to data from CoinMarketCap, DOGE’s price rose by more than 20% last week. The uptrend came to an end as the memecoin’s price saw a 5% correction in the past 24 hours.
At press time, memecoin is trading at $0.4373, making it the seventh-largest cryptocurrency.
Meanwhile, MilkyBull Crypto, a well-known cryptocurrency analyst, posted a tweet revealing that DOGE is close to its all-time high.
Interestingly, a user named X commented on the post, asking what the chances were of DOGE hitting $5. MilkyBull Crypto responded that it was unlikely, but also commented that anything could happen.
What’s next for DOGE?
Meanwhile, DOGE’s batch volume has dropped by 15%. This is good news, as falling volumes when prices fall usually signal a reversal of a bullish trend.
But its weighted sentiment has declined, a sign of rising bearish sentiment around Dogecoin.
Another bullish indicator is open interest, which has fallen along with prices, suggesting a trend reversal could soon occur.
However, DOGE’s funding rate has risen, suggesting that derivatives investors are actively buying memecoin at a discount.
AMBCrypto’s observation of Dogecoin’s daily chart shows that its price is moving within an ascending channel and, at press time, it is testing the pattern’s resistance level.
The MA Cross indicator shows a clear bullish advantage in the market, signaling a successful breakout. If this happens, then DOGE testing its ATH could soon become a reality.
Still, even if memecoin surpasses its ATH, there is still a possibility of a correction afterwards.
If price discovery occurs, investors could once again see DOGE drop to $0.367 after setting new highs.
It is worth noting that DOGE may not test its ATH anytime soon. This does seem to be the case as the Fear & Greed Index enters the “Extreme Greed” phase.
Whenever this happens, it indicates a high probability of a price correction.
