Dogecoin Under The Microscope – Data Points To Rebound


Dogecoin,
the
Shiba
Inu-themed
cryptocurrency
that
took
the
internet
by
storm
in
2021,
has
been
on
a
rollercoaster
ride
in
recent
weeks.
After
a
week
of
corrections,

DOGE
seems
to
be
clawing
its
way
back,
and
some
analysts
believe
it
might
be
gearing
up
for
a
repeat
of
its
past
successes.

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Related
Reading


Echoes
Of
Bull
Runs
Past

Hope
for
Dogecoin
hinges
on
a
recently
identified
trend
mirroring
its
behavior
in
2016
and
2020.
Back
then,
a
similar
price
pattern
preceded
significant
bull
runs
that
propelled
DOGE
to
new
heights.
This
discovery
has
ignited
a
spark
of
optimism
among
DOGE
holders,
with
some
analysts
predicting
a
similar
outcome
in
the
coming
weeks
or
months.

Technically,
things
seem
to
be
lining
up
for
a
potential
surge.
The
Chaikin
Money
Flow
(CMF)
and
Relative
Strength
Index
(RSI),
indicators
used
to
gauge
buying
and
selling
pressure,
are
both
exhibiting
positive
trends,
suggesting
an
increase
in
investor
confidence.

Additionally,
some
analysts
believe
that
if
DOGE
manages
to
turn
bullish,
it
could
face
its
first
resistance
level
at
$0.16,
with
a
potential
breakout
leading
it
to
$0.17.


Short-Term
Blues
And
Bearish
Whispers

However,
not
all
signs
point
towards
sunshine
and
rainbows
for
Dogecoin.
Despite
the
recent
price
uptick,
the
overall
market
sentiment
surrounding
DOGE
remains
stubbornly
bearish.

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This
negativity
is
reflected
in
a
significant
decline
in
weighted
sentiment,
an
indicator
that
measures
the
overall
tone
of
social
media
conversations
about
the
coin.

Social
volume,
which
tracks
the
number
of
mentions
DOGE
receives
online,
has
also
dropped
in
recent
weeks,
suggesting
waning
interest
from
the
community.

DOGE
market
cap
currently
at
$22.8
billion.
Chart:
TradingView.com

Furthermore,
short-term
metrics
like
trading
volume
and
velocity
paint
a
concerning
picture.
Trading
volume,
which
indicates
the
frequency
of
DOGE
being
bought
and
sold,
has
dipped
considerably
over
the
past
week.


Dogecoin
Price
Prediction

Meanwhile,
despite
a
recent
stretch
with
43%
positive
days
and
relatively
low
volatility,
technical
indicators
for
Dogecoin
are

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pointing
bearish.
The
current
prediction
forecasts
a
price
drop
of
over
13%
by
July
4th,
reaching
$0.135.


Related
Reading

Source:

CoinCodex

This
contradicts
the
high
“Greed”
sentiment
of
73
on
the
Fear
&
Greed
Index,
suggesting
a
potential
disconnect
between
market
psychology
and
objective
technical
analysis.


Featured
image
from
Carrie
Glenn,
chart
from
TradingView

Go to Source
Author: Christian Encila


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