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DOGE Set for Massive Rally Despite Sideways Movement: Analyst

Published 16/02/2024, 22:00
DOGE Set for Massive Rally Despite Sideways Movement: Analyst
DOGE/USD
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Coin Edition -

  • Analyst claimed that Dogecoin (DOGE) might reach $1.
  • Dogecoin might extend its rally to $0.1 if buyers regain control.
  • A break below the $0.080 support could erase more gains and send the coin to $0.078.

Hov, a certified Elliott Wave analyst, posted on X, noting that Dogecoin’s (DOGE) price would climb significantly. Despite his bullish forecast, Hov admitted that reading the price action on a micro timeframe was difficult.

The analyst, however, opined that a retest of the $0.06 support could offer a good entry for those looking to buy the meme coin.

On January 26, Hov pointed out that DOGE was close to its bottom. Using the Elliott Wave Theory, the analyst posted a chart showing how Dogecoin would rise above $1. For context, the Elliott Wave Theory can predict long-term price movement based on repeating patterns or changes in investor sentiment.

Therefore, Hov’s $1 price prediction was not for the short term. Instead, the analyst focused on the long-term horizon. Beyond the technical viewpoint, the analyst also mentioned that DOGE’s potential inclusion in Elon Musk’s X Payments could drive a rally for the coin.

Dogecoin Price Analysis

From the 4-hour timeframe, Coin Edition observed that DOGE’s attempt at retesting $0.090 was rejected. At press time, Dogecoin was trading at $0.085. On the upside, DOGE faced resistance at $0.088.

In a highly bullish case, DOGE rising above $0.088 could swing the value close to $0.1. However, if the coin fails to break the level, the price might slide to $0.080, which was the next support level.

Increasing bearish momentum at $0.080 could erase more of DOGE’s gain. Should this be the case, the price might fall to $0.078. Furthermore, the DOGE/USD 4-hour pair showed that the Moving Average Convergence Divergence (MACD) had hit the zero mid-point.

A convergence of this nature suggests consolidation for the coin. Also, the 12-day EMA (blue) and 26-day EMA (orange) were almost at the same spot. Should the longer EMA flip the shorter one, DOGE’s price might decrease to $0.080.

However, a crossover of the 12 EMA over the 26 EMA would imply that buyers are in control. In this instance, the coin’s price could move northward and hit $0.090 for a start. If buying pressure is intense, then DOGE might surpass $0.1.

DOGE/USD 4-Hour Chart (Source: TradingView)

In the meantime, indications from the Relative Strength Index (RSI) showed that the bullish momentum had cooled off. As of this writing, the RSI reading was 57.18. As it stands, Dogecoin might keep trading sideways until bulls or bears decide to determine where the value heads next.

The post DOGE Set for Massive Rally Despite Sideways Movement: Analyst appeared first on Coin Edition.

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