Dogecoin Price Faces 3% Dip: Is a Bullish Breakout on the Horizon?

• Dogecoin has experienced a 3% decline in value over the past 24 hours, though investor sentiment remains positive.
• Several indicators suggest potential bullish momentum for the memecoin.
• Despite recent price drops, long-term holders exhibit continued confidence in Dogecoin.

Dogecoin’s price correction might be temporary, and indicators point towards a potential bullish breakout, providing a silver lining for investors.

Dogecoin’s Recent Price Correction

Over the last few weeks, Dogecoin has faced numerous price corrections. Particularly in the past 24 hours, the price plummeted by more than 3%, leaving many investors anxious about the memecoin’s short-term prospects.

Currently, Dogecoin is trading at approximately $0.1207, with a market cap exceeding $17.49 billion. Despite this downturn, investor confidence remains robust. Data from IntoTheBlock indicates over 4.22 million DOGE addresses have held the memecoin for more than a year, signifying sustained belief in its potential.

Crypto analyst Elja recently highlighted on Twitter that Dogecoin has formed a double bottom pattern, typically a bullish signal. If the trend holds, DOGE could see a significant price surge, potentially reclaiming its highs from earlier in the year.

What to Expect in the Short Term?

Given the indicators, COINOTAG closely examined Dogecoin’s daily chart for future price directions. The Moving Average Convergence Divergence (MACD) indicator suggests a possible bullish crossover imminent. Additionally, the Chaikin Money Flow (CMF) has shown an upward trend, indicating that a price rally may be on the horizon.

However, the Relative Strength Index (RSI) remains bearish, reflecting increased selling pressure. Therefore, while a bullish breakout could enable DOGE to reach new heights, cautious optimism is advised.

Analysis from Hyblock Capital suggests that if a bullish breakout occurs, DOGE might first reach $0.1289 as expected liquidations at this level rise sharply. Post this correction, breaking above $0.1289 could push the price to $0.135.

Performance of Other Memecoins

Dogecoin isn’t alone in facing downward pressures. Shiba Inu (SHIB), another popular memecoin, has also experienced an 8% decline over the past week. Currently, SHIB trades at $0.00001695 with a market capitalization of roughly $9.9 billion.

Conclusion

While Dogecoin has faced recent challenges, several indicators provide hope for a potential bullish breakout. Long-term investors remain confident, and if bullish trends hold, the memecoin might soon regain its previous highs. However, cautious optimism is necessary, as short-term corrections may occur.