The Dogecoin price has risen by 5% in the past 24 hours, reaching $0.1235 as it attempts to recover from plunging to a 100-day low late last night.
The meme token is now up by 2% in a week, but down by 12% in a fortnight and by 27% in the past month, following a difficult few weeks for the entire market.
Despite this, DOGE holds onto an 83% gain in the past year, although this is less impressive than the 12-month gains recorded by other major tokens (e.g. Bitcoin, Solana, Toncoin).
Traders may, therefore, prefer to look to newer tokens for bigger, quicker gains, with a new meme token, WienerAI, attracting investors to its $6.4 million presale.
Dogecoin Price Dips to 100-Day Low
DOGE has now bounced from the 100-day low it succumbed to last night, with its renewed momentum looking as though it could continue for several days yet.
Its 30-day moving average (orange) has begun climbing sharply and is close to overtaking its 200-day average (blue), which is usually a sign of a breakout.
Source: TradingView
Likewise, DOGE’s relative strength index (purple) has jumped from 30 yesterday to nearly 70 today, indicating a return of buying pressure.
What’s also bullish that the coin’s trading volume has risen from $330 million a couple of days ago to around $850 million today.
Again, traders can take this as a sign that the coin’s discounted price has been able to entice buyers back, after several weeks of decline.
Some traders are now suggesting that DOGE is on course to repeat the kind of growth it witnessed in late 2020 and early 2021.
The coin’s indicators would suggest that this is possible, although investors should bear in mind that each year and each cycle comes with its own fundamental and macroeconomic conditions.
And in the present case, buyers remain spooked by the prospect of Mt. Gox’s creditors dumping $9 billion in BTC on the market.
Mt. Gox’s trustees will begin returning this quantity of BTC from next month, with prices likely to take a hit.
As such, the Dogecoin price will potentially have to wait for a few more weeks or even months before seeing some truly substantial growth.
Yet such growth will come sooner or later, with the coin heavily oversold, and with the market likely to improve as central banks introduce rate cuts later in the year.
It could return to $0.15 in the next few weeks, before reaching $0.2 by Q4.
