Dogecoin price has nearly doubled after bottoming out at $0.0491 in June 2022.
Dogecoin (DOGE) price has nearly doubled after bottoming out at $0.0491 in June 2022along with a similar recovery across the entire cryptocurrency market.
On April 20, DOGE was trading at $0.0942, up 94% from last year’s low. But, despite its impressive bounce, its price is still 88% below its all-time high of $0.76 set in May 2021. Therefore, DOGE/USD is still far from establishing a decisive bullish reversal on longer terms.
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Is a Bullish Dogecoin Reversal Nearby?
Dogecoin price skyrocketed over 23,000% in 2021 mainly due to vocal support from Elon Musk. Ironically, the DOGE/USD pair topped out after Musk called it a “scam” during his appearance on Saturday Night Live in May 2021.
The DOGE price entered a long and protracted bearish cycle, favored by the Fed’s tightening outlook (leading to real interest rate cuts in 2022 and 2023). Furthermore, the collapse of multiple leading cryptocurrency firms, such as Terra (LUNA), Three Arrow Capital, FTX, etc., exacerbated the DOGE sell-off.
A 100% price rebound occurred in October 2022 despite the multi-month downtrend. The recovery coincided with Musk’s faltering takeover of Twitter amid hopes that DOGE would become the social media platform’s official payment token.
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Since April 2023, Musk has not added a DOGE payment option on Twitter. However, he briefly substituted the platform’s iconic blue bird logo for Dogecoin’s official mascot, the Shiba Inu meme, earlier in the month. DOGE rose up to 40% on the news.
From a basic perspective, speculation may help Dogecoin maintain its year-to-date gains. But the highest price of all time is still 700% awaywhich is only likely to happen if it receives broader adoption, such as for Twitter payments.
DOGE Price Technical Data
In terms of fractal analysis, Dogecoin’s bullish reversal prospects hinge on holding above its two key weekly EMAs.
In particular, DOGE price has attempted to close above its 50-week EMA (the red wave) near $0.0917 and its 200-week EMA (the blue wave) near $0.0895. This is similar to its sideways action and breakout attempts in April-November 2020 that preceded a 30,000% price rally.
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DOGE may not see a similar 30,000% price rally in 2023 due to conflicting fundamentals. But in the event of a Fed turnaround in interest rates or the addition of Dogecoin payments to Twitter, the memecoin could see a run to its all-time high of $0.76 in 2023.
On the contrary, a reversal from the aforementioned EMAs could trigger a classic continuation setup called an ascending triangle.
This pattern appears on a chart when the price fluctuates between the support of the rising trend line and the resistance of the horizontal trend line.. It usually resolves after the price breaks in the direction of its previous trend.
As a result of its previous downtrend, DOGE’s ascending triangle seems to favor the bearstargeting bearish targets at lengths equal to the maximum height of the pattern from the potential breakout point.
This puts DOGE’s year-end price target within the range of $0.0363-0.0469, 45-60% below current price levels, respectively..
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