Dogecoin’s DOGE Trips 16% in a Week, Analysts Eye Mega Bull Run

• Dogecoin plunges 33% in a month, but trading volume surges by 49.63%.
• Analysts predict Dogecoin’s rebound, citing past recovery patterns.
• Technical signals hint at a potential bullish reversal if RSI dips below 30.

Dogecoin, the world’s largest meme coin, has experienced significant selling pressure, plummeting 16% over the past week and over 33% in the last month. As of this publication, Dogecoin trades at $0.1262, reflecting a 3.61% decline in its value, with its market capitalization standing at $18.164 billion.

DOGE/USD 24-Hour Chart (Source: CoinStats)

While Dogecoin’s price has seen a significant downturn, its trading volume presents a contrasting narrative. Recent data from Coinmarketcap reveals a noteworthy increase in trading activity, with a 49.63% surge compared to the previous day. 

This boost has elevated Dogecoin’s trading volume to $2.116 billion. This indicates that despite recent price declines, investors remain actively engaged in trading Dogecoin, demonstrating sustained interest in the cryptocurrency market.

Is Dogecoin Set for Another Massive Bull Run?

Despite recent declines in its market value, analysts remain bullish about Dogecoin, drawing parallels to its past resilience and recovery patterns. Market data reveals that Dogecoin has faced similar downturns before, each followed by significant bull runs. 

As of press time, the cryptocurrency is trading after a 47% dip, a pattern reminiscent of previous cycles that preceded substantial gains. According to Ali, an on-chain analyst, Dogecoin’s price movements tend to follow a recurring pattern that starts with a breakout from a descending triangle. 

For example, in 2017, after breaking out from such a pattern, Dogecoin’s value dropped by 40% but then surged by 982%. Ali highlighted this pattern again in 2021 when, after a similar breakout, Dogecoin fell by 56%, only to skyrocket by an astonishing 12,197% soon after.

The current market scenario in 2024 aligns with these past trends. Dogecoin has again emerged from a descending triangle, currently experiencing a 47% correction. Ali suggests this could be the precursor to another major price increase akin to those observed in previous years.

DOGE’s Market Analysis

DOGE has found support at the $0.12271 level, the same low reached in March, and is showing signs of a potential market reversal as the price rebounds from this crucial point. This recovery suggests a renewed interest from buyers.

DOGE/USD 1-Day Chart (Source: Tradingview)

Should this upward trend persist, DOGE’s price may approach the 23.6% Fibonacci retracement level, aiming to surpass it and challenge the next resistance at the 38.2% Fib level. A successful breach of these levels could signal a bullish breakout, possibly propelling DOGE to approach the 78.6% Fibonacci level, currently set at $0.20.

Conversely, if DOGE fails to hold the $0.12271 support and breaks below it, the price could descend further, potentially targeting the January low of $0.07448 as the next significant support. Such a move would indicate a continuation of the bearish trend, setting up conditions for a future bullish reversal attempt.

DOGE/USD 1-Day Chart (Source: Tradingview)

Technically, the Relative Strength Index (RSI) is currently at 32.24, moving downward, which suggests that selling pressure remains strong. If the RSI dips below 30, it would signify an oversold market condition, potentially leading to a bullish reversal in the near future.

Moreover, the Moving Average Convergence Divergence (MACD) indicator is trending downward at 0.01023 below the signal line in negative territory, reinforcing the bearish momentum. The expanding red bars on the MACD histogram further underscore the increasing bearish pressure in the market.