Dogecoin price may face decline and rebound
NAIROBI (CoinChapter.com) - Cryptocurrency analyst Capt. Parabolic Toblerone noted that Dogecoin ($DOGE) could see an important drop and recovery. According to the analysis, the price of DOGE could drop by 30%, pointing to a new margin call area of $0.108. From this level, an astonishing 13x growth is expected. Even from the current level, a considerable 8x growth could occur. The update recommends ignoring the previous charts, as there was an error in the fork setup.
Cryptocurrency analyst Max predicts an upcoming “alt season,” predicting a massive rally in altcoin prices. He compares this potential rally to Dogecoin’s past price action, which followed a similar bottoming pattern as Bitcoin. Max sees the recent price action, represented by the purple area on his chart, as a potential sign of a bottom for altcoins.
Dogecoin poised for 13x rally after 30% drop
As of May 23, 2024, Dogecoin (DOGE) is trading at $0.163, up 3.00% in the past 24 hours. The cryptocurrency has a market cap of $23.54 billion, ranking 8th by market cap. The 24-hour trading volume is $3.04 billion, up 67.87%. Increased interest and trading activity could signal further gains in Dogecoin’s price.


DOGE/USD 1-day price chart. Source: TradingView
The green histogram bars on the Moving Average Convergence/Divergence (MACD) indicator show potential positive momentum for Dogecoin. This suggests that a bullish trend could occur if the current support level holds. The Relative Strength Index (RSI) is 51.97, close to the neutral mark of 50, indicating a balanced market sentiment.
The exponential moving averages (EMA) show that the 50-day EMA is above the 200-day EMA, which generally indicates bullish market sentiment. This crossover supports the view that DOGE’s medium-term trend is positive.
Taking these technical indicators into consideration, if Dogecoin holds support at the 61.8% Fibonacci level and the RSI remains solid, the price could test higher resistance levels near the recent high of $0.1748. However, traders should keep an eye out for volatility and potential resistance near these higher levels.
Dogecoin’s Bullish Breakout or False Hope?
Market data supports Dogecoin’s bullish outlook. Currently, 81% holders are making money at current prices. A large number of holders control 63% of the total supply, showing strong support. Dogecoin has a high correlation with Bitcoin at 0.86, indicating that it moves in sync with the dominant cryptocurrency.


Dogecoin on-chain data. Source: Intotheblock
Trading data shows that the total amount of transactions above $100,000 in the past seven days was $3.11 billion. This high trading volume shows the strong interest of major investors. In addition, the exchange had a total inflow of $329.89 million and a total outflow of $245.33 million during the same period.
Dogecoin holders are mainly long-term investors, with 66% held for more than a year. This long-term holding pattern indicates confidence in Dogecoin's future performance. The trading population is almost evenly distributed, with 52% held in the West and 48% held in the East. In the past seven days, the total inflow to exchanges was $329.89 million and the total outflow was $245.33 million, indicating active trading activity.