Those who bought Dogecoin early should be very happy, as Dogecoin has entered a consolidation mode after a significant surge recently.
Since breaking through 208% in early November, DOGE's price has been fluctuating between $0.35 and $0.48. Although the price has somewhat retraced in the short term, falling below the upward trend line, which has made some investors a bit worried, this is precisely the normal adjustment period of 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 DOGE's 16% drop this week, its relative strength index (RSI) has returned to a more 'healthy' state, indicating that the previous overbought condition has cooled off.
In fact, the RSI's pullback is a sign that many crypto assets prepare to rise after adjustments. For example, in March 2024, when DOGE's RSI fell to 50, it welcomed a strong upward trend.
The big players say that from a technical chart perspective, DOGE is ready for the next round of increase, and breaking through the $0.50 barrier could happen 'at any time.'
Investor sentiment is warming up, and DOGE activity is increasing!
The data analysis platform Santiment also brings bullish signals for DOGE's future trends.
They pointed out that the 'average dollar investment duration' of DOGE has seen a significant decrease, dropping by 31%. This indicates that a lot of long-held Dogecoin is being re-circulated, and increased investor activity may mean 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 age of the assets began to 'rise' (get older) again.'
This is undoubtedly a strong bullish signal for the price of DOGE, and now I only regret not buying earlier.
Summary: Is DOGE about to break through $0.50?
After the recent cooling of the overbought condition and technical adjustments, DOGE may see a breakthrough in the coming days or weeks. If it breaks through the $0.50 mark, the upside potential for Dogecoin will further expand.
Although the bullish sentiment in the market has not faded in the long term.
However, DOGE may first test lower support levels, specifically the liquidity low points between $0.32 and $0.34.
In fact, a similar pullback in March 2024 also touched lows near $0.12 and $0.10, before rebounding. Therefore, in the short term, DOGE's price may retrace again to collect liquidity, especially around $0.34 and $0.32.
Therefore, for DOGE investors, this might be a good opportunity for another 'buying the dip'!
So, if you are already holding DOGE, it might be wise to continue focusing on this potential coin. The market sentiment and technical indicators for Dogecoin are building up strength for the next wave of increase.