Dogecoin was on track to test its all-time high, but there might be a hindrance ahead.
- After a sharp weekly rise, DOGE’s daily chart turned red. The fear and greed index signaled a possible sell-off.
After a massive weekly rally, Dogecoin [DOGE] disappointed investors as its price dropped in the last 24 hours. Nonetheless, the memecoin was still on track to test its all-time high.
Will DOGE set a new record, or will it leave investors expecting more?
Dogecoin to test its ATH?
As per CoinMarketCap, DOGE’s price shot up by more than 20% last week. The uptrend came to an end in the last 24 hours as the memecoin witnessed a 5% price correction.
At press time, the memecoin was trading at $0.4373, making it the seventh-largest crypto.
While that happened, MilkyBull Crypto, a popular crypto analyst, posted a tweet revealing that DOGE was near its all-time high.
Interestingly, an X user commented on the post, asking what the chances are of DOGE touching $5. In reply, MilkyBull Crypto mentioned that it was unlikely, but the comment also stated that anything can happen.
DOGE’s next move
In the meantime, DOGE’s triaging volume dropped by 15%. This was good news, as a decline in volume amidst a price drop usually hints at a bullish trend reversal.
But its Weighted Sentiment declined — a sign of rising bearish sentiment around Dogecoin.
Source: Santiment
Another optimistic metric was the Open Interest, which dropped along with its price, suggesting a trend reversal soon.
However, DOGE’s Funding Rate increased, indicating that derivatives investors were actively buying the memecoin at its discounted price.
Source: Santiment
AMBCrypto’s look at Dogecoin’s daily chart revealed that its price was moving inside an up-channel and at press time, it was testing the pattern’s resistance.
The MA Cross indicator revealed a clear bullish advantage in the market, suggesting a successful breakout. If that happens, then DOGE testing its ATH might become reality soon.
Source: TradingView
Nonetheless, even if the memecoin goes beyond its ATH, the chances of a correction after that still remain.
In case of a price discovery, investors might once again witness DOGE dropping to $0.367 after it sets a new ATH.
Read Dogecoin’s [DOGE] Price Prediction 2024–2025
Notably, DOGE might not as well test its ATH anytime soon. This seemed to be the case as the fear and greed index entered the “extreme greed” phase.
Whenever that happens, it indicates that the chances of a price correction are high.
Source: CFGI.io
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