Dogecoin entered an extended accumulation range after hitting a new yearly peak in May 2024. Since then, the price has fluctuated widely, presumably giving investors time to enter back into the meme coin at lower prices. However, with the market on a decline and expectations for a recovery on the horizon, Dogecoin investors seem to be done with their buying. This signals that the drawn-out accumulation trend could be at an end, something that could be bullish for the meme coin’s price.
Why The Dogecoin Accumulation Has Ended
Crypto analyst, VIAQUANT, on the TradingView website, has suggested that the Dogecoin accumulation trend is finally at its end. The crypto analyst points to an important indicator, namely the Moving Average, and their positioning being the evidence that this is the case.
Related Reading
According to VIAQUANT, the Dogecoin price has defended multiple moving averages on important timeframes. This development shows not only strength, but an end to the accumulation phase. The important moving averages here are the 21 Moving Average, the 100 Moving Average, and the 200-Day Moving Average.
The analysis points out that on the 3-day chart, the Dogecoin price has held the 200 Moving Average. Next is the 100 Moving Average on the weekly chart, even after a rapid decline over the last week. Last but not least is the 21 Moving Average, which continues to hold tightly on the monthly chart.
Given these developments, the crypto analyst believes that these moving averages being held show that the Dogecoin accumulation phase has ended. Not only that, they posit that this also means that the meme coin could be gearing up for another price recovery from here.
What Happens To DOGE Price From Here?
Presently, Dogecoin prices are still struggling against the headwinds of the bearish crypto market. But if VIAQUANT’s analysis is correct, then this could only be short-lived from here. Given how much the coin has fallen in the last few months, a bounce from here could be phenomenal.
Related Reading
The crypto analyst points to a similar accumulation trend that took place at the start of 2024. Following that, the DOGE price had bounced more than 100%. Taking that scenario and using it in the current situation, the analyst pegs the Dogecoin price for another 100% surge. This would mean that the price would cross $0.2.
Interestingly, the crypto analyst does not expect this move to take long. The chart shows that the move above $0.2 would be completed sometime in November, meaning a 3-month timeframe for the analysis to play out.
Featured image created with Dall.E, chart from Tradingview.com
Source link
Scott Matherson
https://www.newsbtc.com/news/dogecoin/dogecoin-moving-averages-price/
2024-09-06 11:30:00
