Dogecoin (DOGE) is trading around $0.40, but signs of bullishness indicate that the meme currency is primed to break out soon. Although it has failed to breach the 21-day moving average (DMA), the fundamentals suggest that the stock may soon penetrate the level.
The price of Dogecoin has been ranging sideways after the currency dropped below a short-term trend line. This has left it probing crucial resistances, especially the 21DMA, which has been limiting the upward potential. The fact that this resistance still presents problems indicates that the price could be at risk of a more severe pullback in the short term. If that happens, the next key support level to watch would be the 50DMA at around $0.33, a price point that coincides with important support areas from 2021.
Source: TradingView
Dogecoin Rebound Signals
However, there are signals that may signal a rebound, continue the positive trend, and form a very strong price rebound. One of the most inspiring facts is that the funding rates in DOGE’s future markets will be quite low. The futures funding rates have been seen falling to 0.01%, as reported by Coinglass, from earlier this month’s highs of above 0.09%. This decline in funding rates indicates that much of the exuberance that can lead to large price fluctuations and that is often followed by sharp sell-offs, has been washed out of the market.
Source: Coinglass
Moreover, the currency is still very popular in the media. The news of Elon Musk and Vivek Ramaswamy’s plans for the Department of Government Efficiency (D.O.G.E) has kept DOGE in the news. Such measures may attract more attention to cryptocurrency, especially with Trump’s team ready to come into force in January. If there are more favourable policies for cryptocurrencies, then the role of Dogecoin in the market could only grow, which will only attract more investors.
Source: Department of Government Efficiency
Historical Cycles and Dogecoin’s Potential
Doge’s first significant resistance level to look out for is the 2021 high at $0.73905. This level is the highest that the cryptocurrency has ever traded at and getting back to this price level will be a big boost. But what most analysts think is that Dogecoin does not end here. As a new pro-crypto administration is set to take office in 2025, there are increasing hopes for a market upswing that could also benefit Dogecoin.
Dogecoin’s performance also seems to give promising results when looking at its historical data. As of now, DOGE has experienced three different market cycles starting from 2014 up to the present, and all of these have experienced high price fluctuations. Analysts have used Fibonacci extensions to estimate the previous market cycles and believe that DOGE can go up to $3 in this cycle. However, given the meteoric rise of DOGE in 2021, some analysts expect the token to climb to $10 per unit, a rather aggressive goal implying a $1 trillion-plus market cap.
Source: TradingView
Even though a $10 Dogecoin seems quite improbable now, it is not entirely implausible. If Dogecoin is to sustain this overperformance, then hitting a market cap of hundreds of billions is very much possible.
The broader cryptocurrency market is also indicative of growth as we shall see in the following analysis. As the attention to digital assets continues to grow across the globe and with new regulations that may be more favorable to crypto on the horizon, the environment is right for additional gains. DOGE is one of the most commonly known and most popular meme coins and will be greatly impacted by this shift. The token’s presence in the market is stable, and it will remain so, with more investors being attracted as more people use cryptocurrencies.
Conclusion
Although Dogecoin has some short-term problems, the longer-term picture is positive. This is because DOGE’s futures funding rates have been low, there is increased media attention, and the overall cryptocurrency market is bullish. The coin may reach higher heights from historical prices than in 2021, so it is crucial to watch within the meme coin market. The future seems promising for Dogecoin, and people are curious how far the currency’s price can go.
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FAQs
What is Dogecoin’s current price trend?
Dogecoin is hovering around $0.40, with the 21-day SMA capping it from the upside, but there are indications that this could change soon.
What is the next major resistance level for Dogecoin?
The first major resistance for Dogecoin is the 2021 high of $0.73905 which might lead to a major price action.
How do low futures funding rates affect Dogecoin?
Low funding rates in the futures market point to the fact that there is reduced speculative sentiment which makes the risk of a flash crash low.
Could Dogecoin reach $10 in the future?
Even if it seems quite an ambitious goal to hit $10, it is achievable due to the market’s potential and new policies.
