Despite Dogecoin being up 11% in the last seven days, it has shown weakness over the last few hours, dropping from $0.0697 to $0.682. Is this an early sign that Dogecoin’s current run is behind it, or will it push through to $0.1?
Meanwhile, the community is rallying behind the new GambleFi meme coin Meme Kombat ($MK) after it raised over $820K in a month.
Traders Bullish on Dogecoin Despite Mixed Technical Analysis Signals
Dogecoin’s price chart displays a mixture of bullish and bearish signals, meaning that while there is no guarantee of a move to $0.1, although it remains possible.
Currently, the price respects the September 2022 support level of $0.057 and bounced strongly after retesting it in October.
Another bullish consideration is that DOGE is currently trading above the 50-day EMA.
Also, it formed a bullish divergence (green lines) with the relative strength indicator (RSI) earlier this year. A bullish divergence is where the price makes a lower low, but the RSI does not, signaling that seller momentum is decreasing.
Additionally, it recently closed above a downtrend line that has been forming since April 2022. However, it is important to consider that it has fallen back below this trend line, so the upcoming days and weeks are critical to determine Dogecoin’s near-term trajectory.
A clear trendline breakout could propel DOGE to $0.82, potentially followed by $0.96.
However, with the RSI currently near the oversold region, the price creating lower highs, and the 50-day EMA not acting as strong support, there is also a possibility that momentum is shifting bearish once again.
While it remains to be seen what happens next, traders must closely watch how the price reacts at its current level. A strong rejection could indicate a retest of the $0.57 support and possibly lower, but breaking above the trend line could enable another notably bullish move.
Yet despite the looming bearish factors, the market sentiment remains overarchingly bullish for Dogecoin.
Prominent analyst FieryTrading recently shared a trade idea on TradingView, noting that Dogecoin has recently broken out from a trend line on the 3-day chart.
According to the analyst, this signifies bullish market conditions and could lead to a pump to $0.2.
Clappy22 shares this bullish sentiment but factors in fundamentals like the Bitcoin ETF applications and Elon Musk’s backing of Dogecoin. Based on this prediction, Dogecoin could reach $0.19. However, the analysis also notes initial price targets of $0.85 and $0.11.
CryptoTony also noted the long-term trend line break out. The analyst noted that closing above the trend line on the weekly chart would break a 900-day trend.
However, traders must consider that without a trend reversal confirmation, like a higher high, there remains a significant risk that DOGE could crash lower.
Yet one project already displaying substantial bullish momentum is Meme Kombat, a utility-focused meme coin that analysts back to 10x.
GambleFi Meme Kombat Offers 112% Staking APY and Nears $1M in Its Presale
Meme Kombat is a newly launched platform enabling users to gamble on the outcome of AI-generated battles between their favourite meme characters. This fascinating use case blends the viral nature of meme coins with the trending, vibrant, and enigmatic allure of crypto casinos, making for a notably promising project.
Users wager on battles with the $MK token, providing a sustainable demand stream, also complemented by its staking mechanism.
Meme Kombat’s staking offers holders a whopping 112% annual percentage yield (APY), which will likely drive demand and remove a substantial portion of $MK tokens from circulation.
The project comprises a vastly experienced team well-versed in the blockchain, business, and tech industries. This adds legitimacy and long-term potential to the project and is partly why prominent analysts like Jacob Bury back it to 10x.
Despite launching one month ago, the Meme Kombat presale has already raised over $820K and is promptly nearing the $1 million mark, where its price is set to rise. Investors can buy $MK for $0.1667, but they must be quick to secure the current price.
