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 appears to be recovering and some analysts believe it could be poised for a repeat of previous successes.
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Echoes of bull runs
Hope for Dogecoin hinges on a recently identified trend that mirrors its behavior in 2016 and 2020. Back then, a similar price pattern preceded significant bull runs that propelled DOGE to new highs. This discovery ignited a spark of optimism among DOGE holders, with some analysts predicting a similar outcome in the coming weeks or months.
#Doge monthly: it’s just a symphony!#dogecoin $DOGEUSD #XD #FTW #PeopleCurrency #This is the way @xpagamentos 𝕏Ð pic.twitter.com/bPiPcNTH3l
-Olivier Ð 𝕏 (@Dark64) June 1, 2024
Technically, things appear to be lining up for a potential increase. The Chaikin Money Flow (CMF) and Relative Strength Index (RSI), indicators used to assess buying and selling pressure, show 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 taking it to $0.17.
Short-Term Blues and Bearish Whispers
However, not all signs point to sunshine and rainbows for Dogecoin. Despite the recent price surge, overall market sentiment around DOGE remains stubbornly bearish.
This negativity is reflected in a significant decline in weighted sentiment, an indicator that measures the overall tone of social media conversations about the currency.
Social volume, which monitors the number of mentions DOGE receives online, has also dropped in recent weeks, suggesting a decrease in community interest.
Furthermore, short-term metrics such as trading volume and velocity paint a worrying picture. Trading volume, which indicates the frequency of buying and selling DOGE, dropped considerably last week.
Dogecoin Price Prediction
Meanwhile, despite a recent period with 43% positive days and relatively low volatility, technical indicators for Dogecoin are pointing downwards. The current forecast calls for a price drop of over 13% by July 4th, reaching $0.135.
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![Dogecoin under the microscope – data points for recovery 2 a f21efb](https://thegurumedia.com/wp-content/uploads/2024/06/a_f21efb.png)
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 by Carrie Glenn, TradingView chart