Analyst Predicts Dogecoin Could Skyrocket 6,770% Soon

DOGE trades at $0.3215 after peaking at over $0.50 earlier this year and consolidating lower. Price seems to trade in a range with $0.30 being an important support and $0.35 to $0.40 being an important resistance. Those levels correspond with historical Fair Value Gaps (FVG), areas of unfilled liquidity, and future potential retracement zones.

The price was recently rejected near the $0.45 resistance zone, suggesting selling pressure at higher levels. The consolidation in the range of $0.30 to $0.32 indicates that DOGE is trying to find a bottom, but numerous FVGs below $0.30 might open up to lower targets if bears continue to hold the market down. 

Moving Average Convergence Divergence shows a bearish crossover, with the MACD trending below the signal line. This suggests that the upward momentum for bears has been on the rise, especially after the decline from Nov. highs. There will be longer red bars in the histogram, which indicates the increased selling pressure as DOGE fails to tighten up above higher levels.

DOGE sentiment is mixed as the current market sentiment around it is mixed and, to some extent, dependent on overall market conditions. Although it retains backing from its loyal devotee base, macroeconomic uncertainty and wider crypto market conditions have moderated bullish excitement. Also, a large part of DOGE’s market is speculative based on the open interest data, which, of course, is a concern for the stability of the token during times of low market activity.

DOGE is in a consolidation phase, with $0.30 to $0.32 being the buy zone and $0.35 to $0.40 being key resistances. Bearish momentum remains according to technical indicators, such as MACD and open interest. However, downside risk is presented by the large liquidity gap currently below. To regain bullish momentum and continue its upward trajectory, DOGE must reclaim those key resistance zones and its bullish momentum.