Dogecoin price prediction – Examining the memecoin’s road to $0.30

DOGE's Price Charts Maintain Green, But Bearish Indicators Emerge

In the past week, Dogecoin (DOGE) exhibited contrasting behavior compared to other leading cryptocurrencies, posting gains in both weekly and daily charts. A bullish pattern emerged on its price chart, indicating the potential for a significant rally.

Bullish Week for DOGE

According to CoinMarketCap, DOGE's price increased by over 6% over the last seven days. This bullish trend continued in the following 24 hours, with an additional 3% appreciation. At press time, DOGE traded at $0.1337 with a market capitalization exceeding $19 billion.

Bullish Falling Wedge Pattern

Crypto analyst Kevin shared a tweet highlighting a bullish falling wedge pattern in DOGE's price chart. This pattern suggests that DOGE's price has been consolidating within a triangular range with diminishing highs and lows. A breakout from the wedge could propel DOGE towards $0.30 in the near future.

Bearish Indicators

Alongside the bullish pattern, several indicators pointed towards a potential price correction.

• Trading Volume Decline: DOGE's trading volume decreased while its price increased, indicating a bearish signal.
• MVRV Ratio Drop: The MVRV ratio, which measures the profit/loss of DOGE holders, also fell, suggesting bearishness.
• Weighted Sentiment: Dogecoin's weighted sentiment remained negative, indicating dominance of bearish sentiments in the market.

Short Positions Dominate

According to Coinglass data, DOGE's long/short ratio registered a decline, indicating an increase in short positions compared to long positions.

Technical Indicators Lean Bearish

Technical indicators such as RSI, MFI, and MACD also displayed bearish signals, hinting at the possibility of a price correction.

Potential Breakout Despite Bearish Indicators

Despite these bearish indicators, DOGE remains above its 20-day SMA, providing some support. If DOGE successfully tests this level, a breakout from the falling wedge pattern could occur.

Resistance and Target Levels

Before reaching $0.3, DOGE must first overcome resistance at $0.135. Beyond that, the next potential target in the short term would be $0.143.