- Dogecoin approaches $0.29 resistance; breaking the 20-day EMA might lead to further increases.
- Whale accumulation and increasing active addresses reflect increasing investor confidence even as the price has fallen by 37%.
- Speculation about a Dogecoin ETF, possibly by BlackRock, could drive institutional demand and send prices higher.
Dogecoin’s price is gradually climbing toward $0.29 after a recent correction erased its gains. Despite an overarching bearish trend, analysts anticipate a short-term rally reclaiming its one-month high. Technical indicators and market participation support this forecast, with investors watching key resistance levels to determine DOGE’s next move.
Crypto analyst Igor Bondarenko revealed that DOGE could surge to $0.29 in the near term. His analysis is based on Dogecoin nearing its 20-day Exponential Moving Average (EMA). If DOGE breaks this level, it could act as support for traders seeking entry, boosting prices. Bondarenko warns that DOGE dropping below $0.14 could trigger a plunge to $0.10, reinforcing the bearish outlook.
Analysts Predict Dogecoin Surge to $20
Despite its short-term struggles, some analysts hold an optimistic long-term view on Dogecoin. One prediction suggests DOGE could hit $20 in the coming months. At present, DOGE trades at $0.16, reflecting a 6% gain over the past week and hinting at resilience amid market volatility.
Crypto trader Tardigrade notes that Dogecoin’s market structure mirrors previous consolidation phases before major breakouts. Historical trends suggest that maintaining support at $0.16 could set DOGE up for a strong rally. If this pattern repeats, Dogecoin could experience another parabolic move soon.
At the time of writing, DOGE is trading at $0.168230, reflecting a little surge and Trading volume has decreased by 2%, while Open Interest has risen by 1.60%, per Tradingview data. This indicates continued trader engagement despite short-term price drops.
Can DOGE Recover from Its 37% Drop?
Despite losing 37% of its value in the last month, Dogecoin still seems to have a bullish case, according to on-chain data. Blockchain analytics company Santiment noted that whales, or wallets with over 1 million DOGE, have been accumulating recently, which shows increased confidence from large holders. There are also more active addresses, signaling that investors are more interested as well.
The increase in the number of active addresses and whale accumulation may help case a price increase. The ongoing speculation over a potential Dogecoin Exchange-Traded Fund (ETF) approval is also making people excited. An approved ETF would most likely increase institutional demand and subsequently further increase the price of DOGE.
Concerning Dogecoin, its current 20-day EMA is $0.1875, and the estimated DOGE RSI is 37.23, which are both indicators that DOGE is approaching oversold territory. Repeatedly historically, prices tend to recover from extreme oversold conditions. After surpassing EMA, DOGE could face resistance at $0.2421, $0.3036, and $0.40.
The speculation that Blackrock filed for a DOGE ETF adds more institutional interest in investing into Dogecoin. Such speculation may intensify causing price to increase. Analysts DOGECAPITAL and Trader Tardigrade are of the view that Doge is due for a parabolic rise north of $80 if it manages to sustain its momentum in the long term.
Read More: Dogecoin Eyes $1 as Whale Activity and RSI Trends Signal Potential Reversal
