Memecoins
What is the future of meme money?
TL;DR
- Dogecoin (DOGE) has fallen to around $0.14, a 12% drop in a week, but some analysts expect a potential price increase based on technical models.
- Market analysis shows that DOGE has strong support at $0.115 and resistance at $0.16, with an RSI of 48 indicating that it is neither overbought nor oversold.
Where is the DOGE headed?
The largest meme coin in terms of market capitalization – Dogecoin (DOGE) – has been heavily affected by the recent market decline. Its price collapsed to around $0.14, representing a 12% drop on a seven-day scale.
Despite the downtrend, many X users expect new explosive moves from DOGE. An example is CryptoJack, which predicts a substantial upside once the asset price breaks out of a certain descending pattern. He predicted a 55% rise to $0.22, promising to open a long position.
Tardigrade Trader speculated, arguing that DOGE has been following a specific bullish parallel channel that could eventually lead to a price increase of more than $12. The trader paid special attention to the $1.40 resistance level, which could be reached next year.
The market intelligence platform IntoTheBlock recently suggested that the meme coin is positioned “above a significant level of on-chain support.” The entity estimated that 45 million assets were accumulated at an average price of $0.115, “indicating an area of strong demand that could prove important if the market shows weakness.”
“On the bright side, DOGE may face resistance around the $0.16 level, where 20 billion DOGE is currently held at a loss,” IntoTheBlock added.
Previous predictions and on-chain metrics
Altcoin Sherpa and KALEO are also among those who recently expected a bright future for DOGE. The former expects the meme coin to “do something stupid by the end of the year, and there’s nothing you can do about it.” The analyst said that dealing with it is one of the “safest trades” during the next bull cycle.
KALEO went even further, positing that DOGE could outperform Bitcoin (BTC) as the sector is in a “meme super cycle.”
An essential on-chain indicator that signals an asset resurgence is the Relative Strength Index (RSI). This technical analysis tool determines whether the cryptocurrency is overbought or oversold. It ranges from 0 to 100 and a ratio above 70 suggests a selling opportunity. CSR currently is at 48 and has not exceeded the aforementioned level since May 21st.