As a seasoned crypto analyst with over a decade of experience in the volatile world of digital currencies, I have seen my fair share of market cycles and trends. After carefully analyzing Dogecoin’s price action and key technical indicators, I am inclined to agree with VIAQUANT’s assessment that the extended accumulation phase may be nearing its end.
After reaching its highest point for the year in May 2024, Dogecoin has been in a prolonged phase of consolidation or accumulation, with its price going up and down. This appears to have given investors an opportunity to buy the meme coin at lower prices. However, with the market showing signs of decline but recovery expected soon, it seems that Dogecoin buyers are no longer active. This could indicate that the extended period of accumulation might be over, which could potentially lead to a rise in Dogecoin’s price.
Why The Dogecoin Accumulation Has Ended
According to crypto expert VIAQUANT on the TradingView platform, it appears that the phase of Dogecoin accumulation might have reached its conclusion. This assumption is supported by a crucial factor – the Moving Average – and the current positioning serving as proof.
As reported by VIAQUANT, the price of Dogecoin has successfully held its ground against multiple key moving averages across various timeframes. This suggests not just resilience but a potential end to the accumulation phase. The significant moving averages under consideration are the 21-day Moving Average, the 100-day Moving Average, and the 200-Day Moving Average.
The examination highlights that Dogecoin’s price has maintained its position above the 200-day moving average in the three-day timeframe. Following this, the 100-day moving average on the weekly chart is still holding firm after a significant drop in the past week. Lastly, the 21-day moving average remains tight on the monthly chart.
Based on recent trends, the crypto expert suggests that the fact that moving averages are being maintained indicates that the phase of Dogecoin accumulation may have concluded. Furthermore, they propose that this situation might suggest that the meme currency is preparing to bounce back in terms of price from its current position.
What Happens To DOGE Price From Here?
Currently, Dogecoin’s prices are facing challenges due to the overall bearish trend in the cryptocurrency market. However, if VIAQUANT’s predictions hold true, this downtrend might not persist much longer. Given the significant drop in Dogecoin’s value over the past few months, any recovery could potentially be quite impressive.
The crypto expert notes a pattern of accumulation reminiscent of early 2024, which later led to DOGE‘s price increasing over 100%. If we apply this pattern to the present circumstances, the analyst anticipates another 100% growth in Dogecoin’s price. This would potentially push its value above $0.2.
It’s worth noting that the cryptocurrency expert doesn’t anticipate this upward trend to last too long. Based on the chart, it seems a move beyond $0.2 might happen around November, implying a potential duration of about 3 months for this analysis to unfold.
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2024-09-06 14:46