- Dogecoin’s price declined by 3% in the last 24 hours, but investors’ confidence was high.
- A few of the market indicators looked bullish on the memecoin.
Like most cryptos, the world’s largest memecoin, Dogecoin [DOGE], was facing trouble over the last few weeks. Though the memecoin’s price charts remained red, DOGE might change the trend in the coming days.
Let’s take a closer look at what’s cooking.
Dogecoin’s recent price correction
The memecoin has been witnessing multiple price corrections since last week. Things in the last 24 hours were worse as DOGE’s price declined by more than 3%.
At the time of writing, Dogecoin was trading at $0.1207 with a market capitalization of over $17.49 billion. However, despite the recent price drops, investors’ confidence in DOGE remained high.
AMBCrypto’s look at IntoTheBlock’s data revealed that there were more than 4.22 million DOGE addresses that were holding the memecoin for over a year, reflecting investors’ trust in the memecoin.
Source: IntoTheBlock
In fact, Elja, a popular crypto analyst, recently posted a tweet that also gave hope for a price increase. As per the tweet, Dogecoin reached a double bottom.
Whenever such a pattern appears on a chart, it indicates that the chances of a bullish breakout are high. If a bullish breakout happens, then investors might witness DOGE reclaiming its March highs in the coming weeks or months.
What to expect in the short term?
Since there were chances of a bull rally, AMBCrypto analyzed Dogecoin’s daily chart to better understand which way it was headed. The technical indicator MACD displayed the possibility of a bullish crossover.
The memecoin’s Chaikin Money Flow (CMF) also registered an uptick, further suggesting that the bulls might soon lift the memecoin’s price.
Nonetheless, the Relative Strength Index (RSI) remained bearish as it went southward.
Source: TradingView
To expect DOGE to touch its March highs within days after a bullish breakout is ambitious. Therefore, we then analyzed Hyblock Capital’s data to look for possible targets in the short term.
As per our analysis, if a bullish breakout happens, then DOGE might first touch $0.1289, as liquidation would rise sharply at that level.
A hike in liquidation often results in short-term price corrections. A breakout above that would allow DOGE to reach $0.135.
Source: Hyblock Capital
Is your portfolio green? Check out the DOGE Profit Calculator
While DOGE remained red, Shiba Inu [SHIB], the world’s second-largest memecoin, also suffered a similar fate. CoinMarketCap’s data revealed that SHIB’s value dipped by more than 8% in the last seven days.
At the time of writing, SHIB was trading at $0.00001695 with a market capitalization of over $9.9 billion.
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