Following a significant increase in value over the past week, Dogecoin [DOGE] brought disappointment to investors with a recent price decline. Nevertheless, the meme-based cryptocurrency was still poised to challenge its highest price point to date.
Will DOGE break new records, or will it keep investors wanting more?
Is Dogecoin on the verge of reaching its all-time high?
Based on data from CoinMarketCap, the price of DOGE spiked by over 20% last week. However, this upward trend stalled over the last 24 hours with a 5% decrease in price observed.
At the current moment, DOGE was being exchanged at $0.4373, positioning it as the seventh-largest cryptocurrency by market capitalization.
During this time, MilkyBull Crypto, a well-known crypto analyst, took to Twitter to announce that DOGE was close to hitting its all-time high.
Interestingly, a user identified as X responded to the tweet by inquiring about the possibility of DOGE reaching $5. In response, MilkyBull Crypto suggested that while unlikely, the unpredictable nature of the market always leaves that possibility open.
DOGE’s upcoming trajectory
Meanwhile, the trading volume for DOGE experienced a 15% decrease. This reduction in volume following a price dip is generally seen as a positive indication of an impending bullish trend reversal.
On the contrary, the Weighted Sentiment of DOGE declined, pointing towards an increasing bearish sentiment surrounding the cryptocurrency.
An encouraging metric was the decline in Open Interest, which aligned with the price drop, hinting at a potential reversal in trend on the horizon.
However, the rise in DOGE’s Funding Rate suggested that investors in derivatives were actively purchasing the cryptocurrency at its reduced price.
An analysis of Dogecoin’s daily chart by CryptoCrypto uncovered that its price movements were confined within an upward channel, with the current price testing the channel’s resistance level.
The MA Cross indicator indicated a notable bullish trend in the market, signaling a possible breakthrough. Should this materialize, the possibility of DOGE testing its all-time high in the near future could turn into a reality.
Nevertheless, even if DOGE surpasses its previous all-time high, the potential for a subsequent correction remains high.
In the event of a price discovery phase, investors may once again witness DOGE retracing to $0.367 after hitting a new all-time high.
It is worth noting that a retesting of DOGE’s all-time high might not occur imminently. This was evidenced by the fear and greed index entering the “extreme greed” zone.
Typically, this signal suggests an increased likelihood of a price correction in the near future.