Dogecoin Price Eyes $2.8 as 100 SMA Support Sparks Bullish Hopes

Key Insights:

• Dogecoin price nears the 100-week SMA, a key level that previously signaled major trend shifts.
• RSI signals indicate Dogecoin may be forming a pattern that has historically preceded uptrends.
• New Dogecoin addresses have doubled in a month, showing rising adoption despite price declines.

Dogecoin price has faced significant volatility over the past month, with recent gains failing to offset deeper losses. The cryptocurrency has increased by 1% in the last 24 hours but remains down 17.2% for the week and 33.8% over the past month.

Despite this decline, Dogecoin price is still up 1.3% over the past year, indicating resilience. Analysts are now debating whether the crypto is poised for a recovery or if the downtrend will continue. Key technical indicators, including moving averages and RSI signals, suggest potential price movements.

Dogecoin Price Nears Critical 100-Week SMA Resistance

For instance, Trader Tardigrade, a well-known analyst on X, has emphasized the importance of the 100-week Simple Moving Average (SMA) in determining Dogecoin price trends. His analysis shows that DOGE has historically entered strong bullish phases after breaking above this long-term resistance level. The latest chart suggests that DOGE has once again touched the 100-week SMA, a key level that has led to major price movements in the past.

During the 2017-2018 bull cycle, Dogecoin price remained below the 100-week SMA before a breakout in early 2017 triggered a significant rally. After reaching a peak, DOGE retraced but later found support at the same level. A similar pattern emerged during the 2020-2021 bull run, where Dogecoin price surged after crossing the 100-week SMA. Following the peak, DOGE retraced but continued to test this support level in 2022 and 2023.

Currently, DOGE has once again reached this critical level, as marked by a thumbs-up symbol on Trader Tardigrade’s chart. If history repeats, a breakout could push Dogecoin price toward $2.80. However, past rejections from this level, represented by downward arrows on the chart, suggest that failure to break above the SMA could lead to further declines or sideways movement.

Potential Dogecoin Price Reversal

Another analysis by Trader Tardigrade highlights DOGE price movement based on Relative Strength Index (RSI) patterns. The daily timeframe chart shows that DOGE has entered the oversold zone, a condition that previously marked price bottoms before significant uptrends.

The chart indicates that DOGE initially formed a low before creating a lower low while the RSI remained in the oversold region. Historically, this pattern has preceded bullish reversals.

Historical market behaviour has a history of following this RSI setup as the start of a new bull run. As such, a rebound of the Dogecoin price may occur if the pattern holds, with experts such as Trader Tardigrade eyeing the price of the meme coin going above $0.90.

Dogecoin Price to $5?

At the same time, CryptoElites, another analyst, points to a different bullish formation in Dogecoin price action. Based on his analysis, there is a symmetrical triangle breakout pattern that often has followed a rather explosive price movement. If this pattern repeats itself like it has in the past, DOGE could gain against $5. This projection is predicated on a continued commitment of strong market momentum along with favorable macroeconomic conditions.

Further onchain data brought forth by Glassnode shows a surge in network activities. Over the past month, there has been a notable increase in new DOGE wallet addresses, which is a sign of increasing adoption. As of February 8, addresses could be seen standing at 16,400, but by March 10 they had already doubled to 34,600.

The rising network activity with DOGE suggests that DOGE is becoming a popular token even though it drops in price. Historically, rising adoption has preceded bullish price action.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.