Category: Crypto News, News
Dogecoin Price Prediction: Can it Hit $8 This Year?
Crypto markets are once again experiencing significant volatility, with Bitcoin recently trading below $80,000. This volatility also affected memecoins like Dogecoin, which saw downward momentum last week. However, the future outlook for Dogecoin remains positive.
On Sunday, March 30, Doge dipped 0.56%, trading at $0.1688, declining from weekly highs at $0.21. Still, the token remains above the key horizontal support levels, especially at $0.14. This indicates a potential for a rebound in the short term.
If Dogecoin stays above the $0.14 level, it could bounce to the next support at $0.205, at which point further gains are possible. The key level after that is the resistance at $0.3, which is also attainable in a shorter timeframe.
When taking a more long-term view, charts indicate a potential for even bigger gains. Notably, the weekly Relative Strength Index (RSI) has once again reached oversold levels, for the third time in two years. In the past two instances, this indicator preceded significant price increases.
Notably, the long-term trendline suggests that if this case holds up, Dogecoin has the potential to reach $1 this year. This would also be the next all-time high for Dogecoin, surpassing the $0.7376 level from May 2021. Still, some traders believe that this is just the start of where Dogecoin can go.
Can Dogecoin Reach $8?
Traders have noted that Doge is trading consistently with a circular pattern on the exponential chart. Notably, the recent bottoms in October last year and late March show that the bottom part of the circle holds as a support. If the pattern holds, it puts Dogecoin on a trajectory toward a new ATH this year, and even beyond $1.
Namely, the arc that is forming again, if it holds, would put Dogecoin at $8 this year, which would mean a 5000% increase from its current price. However, it is important to know that this scenario, even if it confirms with historical data, is rather unlikely.
At the price of $8, with the current supply of 148.64 billion tokens, Dogecoin would have a market cap of $1.189 trillion. This would make Dogecoin the second-biggest crypto asset, behind just Bitcoin’s market cap of $1.63 trillion. Given these projections, it remains important for traders to assess the feasibility and risks associated with such significant growth.
READ MORE: Crypto Weekly Recap: Here’s What Happened in Crypto This Week
Written by : Editorial team of BIPNs
Main team of content of bipns.com. Any type of content should be approved by us.
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