Despite a lackluster short-term performance, Dogecoin’s long-term prospects appear more promising.
- Crypto analyst Master Kenobi, drawing on historical data, predicts that DOGE will reach a new high of $6.9. The immediate outlook for DOGE, however, remains bleak.
A review of Dogecoin’s [DOGE] recent activity reveals that both its market capitalization and price have fallen by 3.85% in the last day, making it seem less appealing.
Nevertheless, this downturn could be a minor and necessary setback paving the way for the significant long-term rally that crypto analyst Master Kenobi has recently forecasted.
$6.9 for DOGE deemed inevitable
Dogecoin was at a critical point, with expectations of a significant surge in the coming weeks, says crypto analyst Master Kenobi.
In his words:
“This is most likely the last time we’ve seen ZERO after the comma.”
Kenobi supports his view with a chart showing how DOGE has historically surged following each Bitcoin halving, aligning with trading in a trendline support zone.
DOGE was trading around this key support level at press time, which is anticipated to trigger a sharp upward movement.
Source: X
According to his analysis, there are three key price targets: initially at $0.89, followed by $2.2, and eventually reaching a new all-time high of $6.9.
Despite these optimistic projections, AMBCrypto’s analysis suggests a potential short-term decline for DOGE.
Short-term outlook: DOGE may decline further
According to insights from AMBCrypto, DOGE is likely to continue seeing zeros after the decimal point for the short term.
The Super Trend indicator on the daily timeframe indicates that DOGE is expected to fall further in the short term. This trading tool, which utilizes price and volatility to identify market trends, currently signals a sell as the price is below its line.
The chart suggests that the Super Trend indicator’s current position above DOGE price points to a potential further decline.
Using a Fibonacci retracement line to pinpoint potential levels of DOGE price drop, two support levels are of interest: the first at $0.09542, and if that fails, a drop to $0.08050 is anticipated.
Source: Trading View
The Relative Strength Index (RSI), with a current reading of 39.66, reinforces this bearish outlook. The RSI indicates fading buyer interest as seller activity increases, suggesting that DOGE’s price may continue to decline.
Source: Trading View
This momentum indicator typically identifies overbought conditions above 70 and oversold conditions below 30, further supporting the prediction of a downward price movement for DOGE.
Retail interest fades
Recent data from DOGE shows a significant decrease in active addresses. From 55,295 on August 16, the number has dropped by over 15,000, indicating waning interest among retail investors.
This decline in active addresses often signals negative sentiment, potentially driving prices lower.
Source: Santiment
Coinglass liquidation data also suggests a downward trend for DOGE. In the past 24 hours, over $1.36 million in retail positions have been liquidated, with long traders comprising $1.19 million of this total, indicating a growing inclination to sell.
Source: Coinglass
This pattern was observed the previous day as well, with $612.44k in long positions forcibly closed.
Should this trend persist, DOGE may continue to fall, potentially reaching support levels highlighted earlier at $0.09542 or $0.08050 in the short term.
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