Dogecoin Set to Skyrocket? Crypto Analyst Predicts Huge $DOGE Price Surge Based on Rare Indicator
The meme-inspired cryptocurrency Dogecoin ($DOGE) could be set to “surge incredibly” as a rare technical indicator suggests its price is ready for a big breakout.
The Rare Indicator and Past Performance
According to Trader Tardigrade, a well-known analyst on the microblogging platform X, the Gaussian Channel (GS) indicator has turned green on Dogecoin’s weekly chart. This green signal has previously foretold significant price hikes.
- 2016-2018: GS turned green, and Dogecoin hit new all-time highs.
- 2021-2022: GS turned green again, and Dogecoin again saw massive price surges.
What Are the Whales Doing?
Large Dogecoin holders, often referred to as whales, have been selling their assets. Over the past year, their supply dropped from 45.3% to 31.3%, as per IntoTheBlock data.
These major sell-offs have coincided with falling sentiment for Dogecoin and other meme-inspired cryptocurrencies like Shiba Inu and XRP, according to Santiment’s on-chain analytics.
Patient Traders: Buy Opportunity?
If you’re a patient trader who’s been waiting for the masses to give up on these large-cap altcoins, now might be your chance. According to Santiment, the FOMO (fear of missing out) is at a 2024 low, making this an interesting buy opportunity.
DOGE Price Analysis
Current Trading Price: $0.124 per token, up nearly 90% over the past year but down 27% in the last month due to the wider cryptocurrency market downturn.
Technical Analysis:
- Short-Term Sentiment: Bearish
- Long-Term Potential: Bullish
- Support and Resistance: Immediate resistance at the 50-SMA level ($0.146), and support at the recent low near the 200-SMA ($0.114).
Indicators:
- Relative Strength Index (RSI): 32.5 (oversold)
- Moving Average Convergence Divergence (MACD): Bearish, as the MACD line has crossed below its signal line.
Conclusion
While the short-term outlook for Dogecoin appears bearish, the green signal from the Gaussian Channel indicator offers hope for a future surge. Patient traders may find this a buying opportunity, especially given the rare chart patterns seen in past years.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with the risk of financial loss.
Featured image via Unsplash
