- Dogecoin price suffered an intense selloff alongside the broader crypto market.
- Confidence remains high that the memecoin has more bullish potential ahead.
Dogecoin (DOGE), the seventh-largest crypto by market capitalization, is experiencing declining prices on the weekly charts. The price of DOGE is down 2.27% in the trailing 7-day period after an intense drawdown over the past few days. Consequently, DOGE has fallen from highs of around $0.484 to trade at $0.4061 at the time of writing.
Analyst Encourages Dogecoin Holders
This decline has raised questions among DOGE holders about whether the asset still has upside potential or if it has reached a market peak. One crypto analyst believes the present fears are exaggerated amid these uncertainties, stating that DOGE price movement is not an issue.
“All is good. Let’s go, DOGE,” stated KissPax, a popular market analyst with a larger following on X. He claims the price corrections seen earlier are normal after extended rallies, such as DOGE’s 200% spike. According to the analyst, DOGE’s price chart looks like a month-long sideways channel.
There’s nothing wrong with Dogecoin. It’s now looking like a month-long sideways channel following a 200% rise in price. All is good. Let’s go Ðoge! $DOGE pic.twitter.com/qytGu6t8IV
— KrissPax (@krisspax) December 11, 2024
To back up his claim, KissPax shared a daily candle chart showing DOGE is locked between $0.36 and $0.48. Dogecoin bulls would like to see the asset convincingly breach the $0.48 price level on the daily chart to ascertain the likelihood of an upside push.
Intriguingly, the analysis shares a similar opinion from Santiment, an on-chain data analytical platform. Santiment pointed out that DOGE’s bull run remained intact, noting the asset’s Mean Dollar Invested Age. The Mean Dollar Invested Age is an on-chain indicator that measures the duration digital assets stay idle in wallets.
Santiment noted that the Mean Dollar Invested Age for DOGE is declining. Based on the on-chain indicator, the mean age of DOGE investments is down 31% in the past eight weeks to 370 days.
According to Santiment, the decrease in the Mean Dollar Invested Age confirms the continuation of the bull market. Santiment cited the 2017 and 2021 bull markets, which ended when the mean ages metric climbed higher.
What Next for DOGE?
DOGE recently entered a bearish technical signal by breaking below its ascending channel.
However, the meme coin has now overcome the $0.4 key resistance, demonstrating its bullish outlook. The immediate support is around $0.38, while $0.31 is a more robust fallback. A recovery of $0.44, which serves as resistance, might force DOGE to resume its bullish trend.
Despite the possibility of further short-term price swings, DOGE is still positioned for long-term growth. CNF mentioned that analysts anticipate DOGE will increase by 40% in the next 3 weeks, possibly reaching a new high at $0.55.
Furthermore, chart analysis suggests that Dogecoin could target the $8 to $10 range, aligning with historical growth patterns. Growing investor confidence and bullish technical indicators further strengthen the prediction.
