- Dogecoin is in recovery mode after a week-long drawdown in price.
- Experts shares possibility of retesting the $0.2 resistance level.
Dogecoin (DOGE) is on a bullish ride, a notable jump from the drawdown it has experienced over the trailing 7-day period. For the better part of the past week, Dogecoin has managed to shed off 12.64% of its value, a trend that dragged its price down to a low of $0.17.
Dogecoin Reboot Underway
For Dogecoin, the price is undergoing a bullish rebirth, jumping by 6.61% in the past 24 hours to $0.1835 per data from Marketcap. Amidst this surge, market observers are optimistic the price of the industry’s largest memecoin will jump to $0.2.
Top market analyst @OG_Yomi highlighted this bullish optimism noting that DOGE is one of the top 5 altcoins that did not lose its 200-day Simple Moving Average (SMA) in the 4-hour timeframe. From his projections, Dogecoin has what it takes to retest the $0.2 price mark if current buying optimism is sustained.
Still, on Dogecoin, the analyst noted that the coin is exhibiting previous traits that suggest a bull rally is imminent. He shared a chart that shows “the trend of money flow on the 12-day time frame throughout all of #Dogecoins bull runs.”
Each yellow line represents the trend of money flow on the 12 day time frame throughout all of #Dogecoins bull runs. As you can see we're repeating the exact same trend as previous bull markets and price appreciation should continue to reflect it. Higher prices are coming folks… pic.twitter.com/ByJmjd9rLY
— Yomi (@OG_Yomi) April 6, 2024
As showcased, the money flow has been recorded on at least 10 occasions and current indications show a call-back on history. This, he concluded, places Dogecoin on the path toward a mega rally in the near term. As previously reported by the Crypto News Flash, occasional bullish sentiment within the Dogecoin ecosystem shows increased optimism toward achieving the ultimate $1 price benchmark in the long term.
Dogecoin still maintains the growth sentiment that can help it pull such growth stunts. Additionally, the heightened sentiment around its affiliations to Elon Musk and possible integration on X according to earlier reports by The Crypto News Flash places the coin in a vantage position in the long term.
On the Flip Side
The growth potentials of Dogecoin come with both technical and fundamental flip sides. On the technical front, data from the crypto analytics platform Santiment proves that there has been a spike in the reduction in the number of wallets holding between 1,000 and 1 million DOGE in the past week.
This drop is further complemented by the sharp spike in the large holder transaction count. Addresses trading over $100,000 jumped, confirming the selloff trend. This is a bearish twist for the digital currency.
The fundamental bearish flip is hinged on the fact that Dogecoin’s utility is limited when compared to its biggest rivals like Shiba Inu (SHIB). While Shiba Inu has launched Shibarium, its Ethereum-based layer-2 scaling solution brings new utility to the ecosystem according to previous accounts by the Crypto News Flash. Dogecoin on the other hand remains focused on the Elon Musk influence to drive its growth.
This leaning has proven unsustainable, especially at a time when the memecoin competition is heating up with new entrants like dogwifhat (WIF) and BONK. Riding on this, despite the obvious recovery, adding DOGE to one’s portfolio need to be calculated, and only for long term growth prospects.
