Like most memecoins, DOGE has declined by 17.8% over the past week. Despite the decline, traders and analysts remain bullish.
- Doge has declined by 17% on weekly charts. Despite the dogecoin’s decline, analysts remain bullish based on historical cycles.
The crypto market has experienced heightened fluctuations over the last 30 days. Within this period, BTC has hit $69k and declined below $60k.
This has affected altcoins, with meme coins suffering the hardest, leaving stakeholders worried. Analyst Michael Van de Poppe has shared his worries through X, noting that,
“I’m scared about the #Altcoin markets.”
Doge’s historical cycles
Despite the worrying voices, few analysts have a different perspective on meme-coins, especially Dogecoin [DOGE].
Analysts are pointing at DOGE’s historical cycle to argue that it’s a pattern and DOGE will bounce. For instance, Vision Pulse shared his analysis of Doge’s historical pattern, noting that,
“What if I told you #dogecoin is performing identically to last cycle? Take a look. Dogecoin rallied almost 400% to the .236 retracement in 2020, then fell 50% as the BTC.D rose. Look what is happening right now.”
Source: X
According to the analyst, DOGE will recover by recording a 400% surge, repeating the 2020 cycle. Pointing at the historical performance, the meme-coin will not decline for long.
Another analyst Javon Marks made similar analysis pointing at DOGE’s cycles that’s likely to repeat, noting that,
“Over the years, $DOGE (Dogecoin)’s Log Breakouts (displayed) have ALWAYS led to massive upsides and prices of, and have done so again with a break currently holding! Based on the previous 2 breakouts, each of these runs has consecutively gotten larger, and if we are to see this take place again, we can be looking forward to a more than $10 DOGE in a >7,200% Bull Run.”
Source: X
What DOGE price charts suggest
As of this writing, Doge was trading at $0.107 following a 4.97% decline on daily charts.
Also, the memecoin has declined by 17.86% on weekly charts after a month of downward trend. Equally, its trading volume has declined by 20.48% to $713.6M over the last 24 hours.
Source: Tradingview
Thus, AMBCrypto’s analysis showed that DOGE was experiencing a strong downward momentum. The Relative Strength Index was at 34, while the RSI-based MA was at 49.
This suggests that the market is experiencing higher selling pressure, with sellers dominating the market.
The RSI entering the oversold territory presents a buying opportunity that might activate trend reversal through increased buying pressure.
Also, the directional movement index shows a declining bearish momentum. Although the negative index at 19.7 sits above the positive index at 17.9, the negative index is declining.
Equally, the neutral index at 29 sits above the negative index. This suggests a potential reversal as the prices decline to an oversold zone.
Source: Santiment
Looking further, our analysis of Santiment shows that funding rates aggregated by exchanges are positive at 0.005%.
This suggests that long position holders are paying short positions to hold their positions, suggesting that traders are bullish and expect a price rise soon.
Source: IntoTheBlock
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Equally, large holders outflow has been declining from a high of 192 million to 42 million. This shows large Dogecoin holders are not selling their assets, suggesting confidence in a potential trend reversal.
Therefore, if DOGE closes above the critical support level at $0.105 on daily charts, the meme-coin will reverse th trend and attempt to challenge the $0.13 significant resistance level.
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