Dogecoin price enters correction: could DOGE hit $1 soon?

As an experienced analyst with a background in both traditional finance and cryptocurrencies, I find myself intrigued by the recent performance of Dogecoin (DOGE). Having witnessed the rise and fall of numerous assets over the years, I must admit that the meme coin’s resilience is quite impressive.


The price of Dogecoin experienced a technical adjustment, dipping slightly, after reaching a high not seen for several months on November 6th, which coincided with the election of Donald Trump.

On November 7th, the popular meme cryptocurrency Dogecoin (DOGE) dipped to $0.1930, representing a 12% decrease from its highest point this year. This type of price adjustment, ranging between 10% and 19%, is often referred to as a “local correction.

Despite a rocky start, DOGE has shown impressive growth recently, skyrocketing by an astounding 140% from its August lows, making it one of the top-performing cryptocurrencies over the past few days.

A significant portion of these profits occurred when crypto traders maintained a positive outlook about Donald Trump’s victory and its potential impact on Elon Musk, a major supporter. Now that Trump has been elected, there is speculation that Musk will assume a position within the Department of Government Efficiency. Furthermore, he is anticipated to play a significant role in promoting cryptocurrencies within the administration.

It’s possible that Dogecoin’s robust foundations and trends might propel it upward over a longer period. Notably, the value of Dogecoin’s futures contracts has risen to an impressive $1.62 billion, marking its peak since April this year.

Furthermore, the trading volume of the coin in the live market continues to stay high. On Thursday, it peaked at $6.4 billion, the highest it’s been in quite some time, indicating increased investor interest and purchases.

Will Dogecoin price hit $1?

Fundamentally, Dogecoin appears robust enough to potentially surge as high as $1, representing an impressive increase of approximately 426% from its current value.

As an analyst, I’ve observed that from April to September this year, Dogecoin’s price chart exhibited a falling wedge pattern. This pattern is constructed by two trendlines that connect the higher lows and lower lows, indicating a contracting triangle in the market. A bullish breakout occurs when these lines converge, suggesting potential price increase if the price breaks above the upper trendline.

On October 25, the Dogecoin (DOGE) price displayed a ‘golden cross’ formation, where its 200 and 50-day moving averages intersected in an upward direction. Historically, this technical pattern tends to be followed by further price increases.

Currently, Dogecoin (DOGE) is developing a cup and handle pattern, which typically indicates further increases. If DOGE manages to break above the upper boundary of the cup at approximately $0.2285, additional gains would be considered valid.

On the flip side, a drop below $01425, its lowest swing on Nov. 3 will invalidate the bullish view.

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2024-11-07 20:24