Those who bought Dogecoin in advance should be very happy; recently, after a significant surge, Dogecoin has entered a phase of consolidation.
Since breaking 208% in early November, DOGE's price has been fluctuating between $0.35 and $0.48. Although there has been a short-term price pullback, dropping below the upward trend line, which has made some investors a bit worried, this is a normal adjustment period for the market, and the upcoming trend may be more optimistic.
Next stop-loss point: $0.50, Dogecoin could 'explode' at any moment!
According to cryptocurrency analyst Trader Tardigrade, despite a 16% drop in DOGE this week, its Relative Strength Index (RSI) has returned to a more 'healthy' state, indicating that the previous overbought condition has cooled down.
In fact, the RSI pullback is a sign that many crypto assets are preparing to rise after adjustments. For instance, back in March 2024, when DOGE's RSI dropped to 50, it ushered in a strong upward trend.
Experts say that from a technical chart perspective, DOGE is ready for the next round of increases, and breaking the $0.50 barrier could happen 'at any moment.'
Investor sentiment is warming up, and DOGE's activity is increasing!
Data analysis platform Santiment has also brought a bullish signal for DOGE's future trend.
They pointed out that the 'average dollar investment lifespan' of DOGE has seen a significant decline, dropping by 31%. This indicates that many long-term held Dogecoins are being re-circulated, with increased investor activity, possibly meaning more funds are entering the market.
A tweet on X stated: 'Similarly, the bull markets of 2017 and 2021 also only stopped when the average asset age began to 'rise' (get older) again.'
This is undoubtedly a strong bullish signal for DOGE's price, and now I only regret not buying in earlier.
Summary: Is DOGE breaking through $0.50 just around the corner?
After the recent overbought cooling and technical adjustments, DOGE may see a breakout in the coming days or weeks. If it breaks the $0.50 mark, the upward potential for Dogecoin will further open up.
Although, in the long run, the market's bullish sentiment has not dissipated.
However, DOGE might first test lower support levels, specifically the liquidity low points between $0.32 and $0.34.
In fact, similar pullbacks in March 2024 also touched lows near $0.12 and $0.10 before rebounding. Therefore, in the short term, DOGE's price might pull back again to gather liquidity, especially around $0.34 and $0.32.
So, for DOGE investors, this might be a good time to 'buy the dip' again!
So, if you are already holding DOGE, it might be worth keeping an eye on this potential coin. The market sentiment and technical indicators for Dogecoin are building strength for the next wave of increase.