5.8 billion Dogecoin (DOGE) is about to awaken, Dogecoin price prediction
Due to the continued weakness of most altcoins, the price of Dogecoin has fallen for three consecutive days. Its pullback mirrors that of other popular meme coins such as Shiba Inu, Floki, and Dogelon Mars. Now, with 5.8 billion Dogecoins suddenly in circulation, can this coin recover its upward trend?
This month, Dogecoin's price remains in a consolidation phase. It has dropped to a low of $0.3787, nearly 20% down from the month's peak. The ongoing profit-taking has prompted some investors to start selling their tokens. Third-party data shows that the sentiment around Dogecoin has now turned negative.
This marks a significant reversal since the sentiment index surged in November when cryptocurrencies soared to multi-year highs. More data also shows that the cryptocurrency fear and greed index has declined from a high of over 90 earlier this year to 80. This indicates that these tense sentiments are spreading.
Additionally, the price of DOGE has surged nearly 500% from its low in July to its high in November. Many cryptocurrency traders typically sell their tokens at the end or pause of a bull market.
The price of Dogecoin remains in a predicament, especially in the short term. According to cryptocurrency analyst Gonzo, who has over 12,000 followers, the token is still in trouble, with the 100-day moving average at $0.4073 providing important resistance. The token also found key support at the 200-day moving average.
In this scenario, if it falls below the 200 EMA level of $0.3833, it will confirm further declines. This move would push it down to the next key support level of $0.3660, which is the lowest fluctuation on December 10. If the token breaks through the 100 EMA, it will confirm further upward movement.
There are signs that the DOGE price is forming a bullish flag chart pattern. This pattern consists of a long vertical line and a rectangular pattern. In this case, the token faces support on the lower side of the pattern.
