Dogecoin’s price has risen dramatically over the last month, and now the community expects that this meme coin is going to reach $1 in the coming months. The journey may not be smooth.
Since August of this year, DOGE’s price has been consolidated between $0.094 and $0.14.
The token finally managed to break out of that range after Tesla CEO Elon Musk proposed the creation of the Department of Government Efficiency–abbreviated as D.O.G.E.–following his endorsement of Donald Trump’s 2024 presidential campaign just months before.
Following Trump’s victory, DOGE surged to a high of $0.43 per share on November 12, and its market capitalization surpassed $60 billion.
DOGE, at the time of writing, was trading up more than 22.5% over the last 24 hours, but it faced a drop due to Bitcoin, which dropped from $89,805 all-time to just $87,222.
The election is now behind us, but Bitcoin still remains the key factor driving altcoin rallies. In Dogecoin’s case, however, increased demand from individual investors also helped to fuel its recent growth.
Santiment data shows that in the last month 75,000 wallets containing less than 100,000 DOGE appeared.
While large holders reduced their holdings by 350 wallets net, 108 wallets returned to the market when DOGE crossed $0.40.
Prices for DOGE
Analysts and traders alike are confident that meme coins can surpass the $1 mark in this bull market.
Analyst Kaleo believes that DOGE is still in the early stages of its recent rally. The token may move up to $1 after finding its feet above the resistance level $0.50, which is yet to be retested by the meme coin.
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Peter Brandt, a veteran trader who has been in the industry for many years, expects Dogecoin will reach new highs soon. He confirmed that Dogecoin had broken through a multi-month downward channel with strong price accumulation.
Trader Tardigrade presented another bullish case of DOGE. He highlighted the fact that Dogecoin has recently surpassed it’s previous monthly high.
Tardigrade based its analysis on past patterns and found that DOGE experienced gains as high as +800% in just four months, or +1000% after 8 months.
If DOGE continues on this path, the stock could see significant gains within the next 4-8 months. The price target may even reach the range of several dollars if momentum is maintained.
Analyst Ali Martinez also noted that DOGE might test the upper or middle boundary of an ascending long-term channel. This could put potential prices at $2.40, or $18 depending on whether bullish momentum continues.
Correction expected
Analysts also agree, however, that the next step in the rise of the token will require a correction, since this would allow for a stronger support base, which could sustain the rally over the long term.
DOGE’s price was well above its 50-day average and 200-day average on the daily chart when I wrote this article.
The RSI, however, was 91.23. This indicates overbought and suggests a strong likelihood of a correction or consolidation in the short term.
Martinez shared a similar view in a different post. He noted that the TD Sequential Indicator was flashing Sell signals for Dogecoin, on both the 4 hour and 12 hour charts, with another signal forming, on the daily chart.
He is therefore confident that the price of meme coins will correct before they resume their upward trend.
The post Will Dogecoin reach $1? This post may change as new information unfolds
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