Analyst ‘Cautiously Optimistic’ About Dogecoin As | Crypto News
As market volatility sends Dogecoin (DOGE) to retest its breakout stage, some analysts have suggested “cautious” optimism for the main memecoin, arguing that weak bullish momentum might invalidate the current price motion.
‘Optimism With A Seatbelt On’
On Thursday, Dogecoin fell to a one-week low of $0.095 before bouncing back above the $0.098 assist stage. The cryptocurrency has been hovering between $0.096 and $0.104 for the past six days, briefly reaching a multi-week high of $0.117 during the weekend.
Notably, DOGE broke out of a one-month descending trendline after last week’s price surge, igniting optimism among traders. However, the market’s volatility has halted the main memecoin’s momentum, which is now shifting sideways within its local vary.
Market observer Whale Factor highlighted that Dogecoin has returned to “the ultimate support level” positioned at $0.097. This stage is a macro resistance-turned-support, serving as a key bounce space over the past two years.
“We’ve seen this play out twice before with massive bounces. (…) If this horizontal support holds, the risk/reward for a long position here is insane,” he affirmed, including that a rebound from this stage might goal the $0.15-$0.20 space.
Meanwhile, analyst Trader Tardigrade famous the current efficiency, explaining that the breakout and the following retest of the downtrend line is “textbook bullish price action.” Nonetheless, he has warned that he’s “cautiously optimistic” due to weak bullish momentum.
As he explained, the descending trendline has been retested and held as assist over the past 5 days, printing daily closes above the breakout stage. This alerts that the construction stays bullish.
Despite this, the analyst considers the rally “feels a bit underpowered” and that DOGE’s uptrend momentum “is lacking strength” as the price is slowly retracing the just lately climbed ranges.
“Price has to attract real demand to make this breakout credible. Keep an eye on volume and punchier candles—until those show up, it’s optimism with a seatbelt on,” he asserted.
Dogecoin To Repeat Previous Performances?
Trader Tardigrade also pointed out that Dogecoin appears to be mirroring the same sample that has beforehand led to parabolic strikes. Per the post, the memecoin has accomplished a “Solid Base structure” twice before, first in 2016 and then in 2020.
The analyst emphasised that traditionally, “when DOGE finishes building these bases, it doesn’t take long before the breakout happens.” Now, the cryptocurrency is at the sting of the third base, with the “same prolonged consolidation, same gradual accumulation, same compressed energy.”
Similarly, market watcher Bitcoinsensus noticed that in past cycles, Dogecoin had “thrived during strong risk-on environments,” sometimes breaking out after long stretches of consolidation.
Notably, the cryptocurrency noticed a 95x transfer between 2017 and 2028 after breaking out of its macro consolidation vary. Then, it recorded a 310x rally toward its latest all-time high (ATH) following its 2020 breakout.
The chart reveals that the altcoin could possibly be close to the end of its long consolidation period, and a parabolic transfer might start in the next yr. “If this cycle plays out like previous ones, Dogecoin may have room to push toward the $5 zone,” the analyst concluded.
As of this writing, DOGE is trading at $0.097, a 1.1% decline in the daily timeframe.
Stay up to date with the latest trending crypto news! Visit our web site daily for the freshest Crypto news and content, fastidiously curated to keep you informed.
