Dogecoin may have dropped 12.2% in the past 24 hours, but investor interest has not waned. Dogecoin recently hit a yearly high of $0.4346, and despite the decline, further upside potential remains strong. With a possible target of $1 by November, The Bit Journal takes a deep dive into key technical indicators and market dynamics to assess the possibility.

MVRV Z-Score: A Hidden Indicator of Dogecoin's Strength

An often overlooked indicator, the MVRV Z-Score, is gaining attention to gauge Dogecoin's potential. The metric measures the difference between the market cap and the realized capitalization, helping to determine whether an asset is overbought or oversold. A Z-score above 5.38 typically signals overbought conditions, but currently the score averages 2.7, suggesting that Dogecoin still has room to grow.

If this Z-Score increases in November, the projected Dogecoin price of $1 could become a reality. This indicator serves as an important guide for those watching Dogecoin's next big move.

Major Technical Hurdles to Dogecoin's Upward Path

From a technical perspective, Dogecoin faces a number of resistance levels on its journey to $1. Notably, the $0.50 and $0.76 levels pose significant hurdles. These levels have historically generated significant selling pressure, marking areas where traders should exercise caution.

To reach $1, Dogecoin must first overcome these barriers. If successful, a rally to $1.50 could even be on the horizon. However, investors should be aware of the possibility of a reversal at these key levels. Investors beware: Dogecoin could be on the verge of a breakout!

Strong Support Levels and Potential Risks

While Dogecoin's upside momentum looks promising, downside risks remain clear. There is solid support just below the current level of $0.35. This price level could act as a cushion during any market pullback. However, if a larger decline occurs, the next important support lies at $0.20.

A drop below this lower support level could derail current bullish expectations, leaving investors to keep a close eye on these support zones.

Dogecoin's Journey Is Far From Over

Dogecoin appears to be preparing for another bull run, with technical indicators and market momentum all pointing to further upside potential. However, the volatile nature of the cryptocurrency market means that surprises may be in store. For Dogecoin, hitting $1 may just be a matter of time. As always, patience and strategic positioning are required for those watching Dogecoin’s path upward.