Dogecoin Price Prediction: Analyzing Potential Surge to $0.50

Dogecoin price prediction – Assessing if a surge to $0.50 is possible now

On the price chart, Dogecoin (DOGE) recently displayed a double bottom pattern, indicating the possibility of a strong upcoming rally. Despite this bullish signal, both the technical indicators and the liquidation levels suggest that a short-term consolidation phase could be in the cards.

So, what direction could the primary memecoin take?

Dogecoin Holds Firm Within its Immediate Demand Zone

By referencing the rally seen in November, a series of Fibonacci retracement and extension levels were identified. Notably, the $0.143 mark, a previous high reached in July, now acts as a crucial support level. Below the local demand zone spanning from $0.36 to $0.38, the $0.272 and $0.215 levels are seen as significant supports worth monitoring.

Currently, a decline to these levels seems improbable. The Relative Strength Index (RSI) recently dropped to 53, indicating a subdued bullish momentum over the daily timeframe. However, with the RSI remaining above the neutral 50 mark, buyers still maintain control of the situation.

The On-Balance Volume (OBV) sits above the local highs that Dogecoin reached during its November ascent. A shift in OBV below these levels could introduce a bearish bias. Presently, the prevailing evidence suggests a relatively weak selling pressure.

Liquidation Heatmap Suggests Momentum Likely to Remain Stable

Over a 3-month assessment period, a concentration of liquidation levels emerged around $0.485 and $0.355. Interestingly, the latter coincides with the local demand zone, possibly signaling a revisit in the days or weeks ahead.

Further down the line, a cumulative pool of liquidity is forming at $0.34, which could attract prices in a southward direction.

Examining the liquidation heatmap closely reveals notable liquidity at the $0.395 and $0.425 levels. Given the current lack of momentum on the daily chart and the standoff between buyers and sellers, a short-term consolidation phase for Dogecoin appears plausible.

A breakthrough above $0.43 in the imminent future might signal a retesting of the $0.5 threshold. Conversely, a dip below $0.395 and $0.355 could potentially pave the way for a substantial and prolonged correction in DOGE.

Disclaimer: The views expressed in this article are solely the author’s opinion and do not constitute financial, investment, trading, or any other form of advice.

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