DOGE Price Eyeing $0.09 As Bulls Await Buying Signal
On February 14th, Valentine’s Day, the price of the leading meme token in the market, Dogecoin, managed to break above the descending trend line.
However, the breakout proved to be premature, as traders did not take long to book profits. But, it did provide sidelined investors the encouragement they needed to ensure they would not be left behind again.
5% rise likely
The price of the largest meme token in terms of market cap is still above the descending trend line, which sets the stage for a rise of 5% that would see it reach the milestone of $0.0900.
The Relative Strength Index (RSI) of Dogecoin is moving north, which points towards rising momentum. If it continues with this trajectory, then it could see the RSI cross above its signal line.
This crossover is considered a buy signal. As far as the Awesome Oscillator (AO) is concerned, its histogram bars are also in positive territory and this adds credence to the bullish thesis.
If the buyers continue to show their resolve, then it is possible that the price of DOGE could surpass the $0.0900 mark. This could even see it extend its gains to the psychological level at $0.1000.
The other side
However, there is also a possibility that the bullish thesis might not play out, depending on various factors.
If that happens, then traders who decide to cash on their gains could see the price of the popular meme token drop below the descending trend line.
This would end up refreshing the bearish cycle. This directional bias could see the price of Dogecoin lose the support it has at $0.0817.
If the situation turns dire, then the price of the original meme token could end up extending its fall to $0.0752.
The background
Since October 2023, Dogecoin has recorded a pretty decent performance. Since October 19th, bulls have managed to record gains of 45%.
But, this is just half of the gains that Bitcoin has managed to make in the same duration. Weakness during a broader market rally is considered a sign of weakness from the buyers.
However, analysts have given some hope to DOGE bulls because they have suggested that the dog-themed meme token was in a consolidation phase.
In 2021, there was a similar pattern seen before the rally. There was a range formation before the previous rally that continued for 576 days.
The rally that occurred was a whopping 18376% from range highs. At publishing time, DOGE had already moved within a range for the last 483 days.
This means that there might be three more months before there could be a breakout in the price of Dogecoin.
But, as compared to 2020, there is a lot more competition in the market, which means that the capital that was previously flowing into DOGE will now be diluted amongst a basket of other meme tokens.
