Everything You Need To Know About DOGE This Week

The month of May did not record strong performance from Dogecoin. In April, the meme token had recorded a rise of 12.63%.

However, its price movement turned out to be rather steep since then, as the $0.16 resistance level has seemingly constrained growth.

The current price of the largest meme token in the market is close to the all-time high it had reached in April 2021 of $0.17.

If the meme coin manages to break past this level, it could potentially record a huge rally to $1 or higher.

The indicators

The Relative Strength Index (RSI) is one indicator to take into account because it measures the selling versus buying pressure.

An RSI of 70, or higher, is usually seen before a pullback because it points towards an overbought market. But, prices do rise even in this zone.

As far as Dogecoin is concerned, the meme token is currently in the ‘neutral zone’, as its RSI has reached 50.

Climbing closer to 70 would point toward a stronger sentiment in the market, which could eventually lead to a bull run.

Meanwhile, Dogecoin currently has a Market Value to Realized Value (MVRV) of about 1.55. This means that the current price of DOGE is 1.55 times the market average cost basis.

This shows that there could be a price rally in the works for the original meme token.

Whale activity

It is essential to take whale activity into account because these large holders also have a significant impact on price.

DOGE whales had accumulated more than 700 billion tokens in a period of 72 hours on May 31st. These were valued at $112 million at the time.

If whale activity continues to rise, then there could be an uptrend in the price of DOGE.

Price breakout

Ali Martinez, a renowned crypto analyst, also shared his perspective on the current bearish sentiment in the market.

He recently said that it was similar to what had happened back in February this year, just before there had been a 200% rise in the price of Dogecoin.

This could point towards a massive rise in the price of the meme token in this month. According to the analyst, Dogecoin is currently facing significant resistance between $0.166 and $0.171.

However, he also pointed out that there is potential for the meme coin to double in price.

Between these resistance levels, there are a total of 75,000 addresses that have purchased almost 10 billion tokens.

But, once DOGE manages to surpass these resistance levels, then it could see is value double. The next important resistance level would then be $0.322.

The daily chart shows the price pattern and it is clear that DOGE has managed to leave the correction zone.

Therefore, a trend reversal could be on the cards for the meme token. The only question is whether the price of DOGE will surge in this week or in the coming weeks.