Crypto: New Peak Of Dogecoin! Technical Analysis As Of October 24, 2024

As the crypto market has regained strength, Dogecoin shows promising interest. Let’s explore the upcoming prospects for the DOGE price.

Situation of Dogecoin (DOGE)

After sinking to $0.08, Dogecoin sparked buyer interest that has been upheld. Indeed, the crypto then underwent a consolidation period, forming a double bottom. The neckline of this latter was eventually breached, bringing the price of Dogecoin toward $0.13. The DOGE then endured a sudden drop before forming new support at $0.10. It is interesting to note that the latter is at the same level as a notable value area. As the crypto market was revised upwards, Dogecoin rebounded sharply. This increase allowed the crypto to surpass its previous peak as well as its first pivot resistance. Recently, Dogecoin reached the resistance of $0.15, situated at the same level as the annual VWAP.

At the time this text is written, the DOGE price is trading slightly below $0.14. The crypto has thus experienced a slight decrease in its price. Although this may be concerning, it does not question the medium and long-term trend. These remarks can be confirmed by the fact that the DOGE is positioned above its 50, 100, and 200-day moving averages. Nevertheless, it will be necessary for the price of Dogecoin to maintain its momentum to allow the daily moving averages to cross upwards, which would reinforce this idea. On the crypto’s dynamics front, it shows a recovery, as evidenced by both its price and its oscillators.

The current technical analysis has been conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, a trainer at Family Trading, a community of thousands of self-traders active since 2017. You will find live sessions, educational content, and mutual assistance around financial markets in a professional and warm atmosphere.

Focus on Dogecoin Derivatives (DOGE/USDT)

The open interest of DOGE/USDT perpetual contracts has been revised upwards, just like its underlying. This undeniably demonstrates the interest of speculators in the crypto. Although this phenomenon is accompanied by a positive funding rate, indicating a dominant buying force on Dogecoin perpetuals, it is worth noting that the CVD has recently been revised downwards. This reveals recent predominant sell orders in the market, thus illustrating a certain pessimism regarding the short-term future of the crypto. Regarding liquidations, it can be seen that they are not truly significant, although the last ones have been primarily buyers, demonstrating a potential capitulation of the buyers.

The heatmap of liquidations for DOGE/USDT contracts reveals that the Dogecoin price has sparked selling interest, leading to a decline as it approached the liquidation zone identified just below $0.15. Currently, the crypto is located just above a liquidation zone around $0.13. Below, various liquidation zones can be noted down to $0.114. Even lower, there are also liquidation zones below $0.10, but these are much less significant. The price approach to these levels could lead to a massive triggering of orders, thus increasing the risk of heightened volatility for the cryptocurrency. These zones thus represent crucial points of interest for investors.

Forecast for Dogecoin Price (DOGE)

• If the DOGE price remains above $0.13, we could anticipate a bullish continuation toward the level of $0.15. The next resistance to watch, if this movement is confirmed, could be above $0.16 up to $0.175. Beyond that, the $0.20 zone would be a target to consider, representing an increase of over 45%.

• If the DOGE price fails to stay above $0.13, a return to $0.12 would be possible. If the downward movement continues, the next support to watch would be around $0.11. Even lower, we could aim for the support zone around $0.10, corresponding to a potential decline of about 27%.

Conclusion

After a consolidation followed by a rebound, Dogecoin shows signs of recovery despite a slight recent decline. The underlying trend remains positive in the medium and long term, supported by the current market dynamics. To confirm this trajectory, maintaining momentum will be crucial. Thus, it will be essential to closely monitor the price response at key levels to validate or revise the current forecasts. Finally, let us remember that this analysis is based solely on technical criteria, and that the price of cryptocurrencies can evolve rapidly based on other more fundamental factors.