Dogecoin is the trending meme token in the crypto industry, which is backed by Tesla’ CEO Elon Musk. It provided tremendous return in 2019-2021, but now the price of DOGE has been in a downtrend for the last 12 months.
At the time of writing this post, DOGE has been consolidating between $0.14 and $0.07 for the last four months. Daily candlesticks have found resistance on the upper Bollinger Bands, and today’s candlestick is coming down for a short correction around the baseline.
Other technical indicators for DOGE, such as RSI, are around 50, which suggests the price may come down to the level of the support around $0.07, and that could be an ideal opportunity to buy for the long term.
In the last four months, Dogecoin has formed a triangle pattern on the weekly chart, but the $0.07 is strong support, and we do not think it will break the support within the next few months. Technically, Bollinger Bands increases the volatility, so it may not be the right time to invest in DOGE for the long term.
As a meme coin, Dogecoin does not have strong fundamentals for long-term sustenance, but the DOGE rally depends on community sentiment and news. Any news from Elon Musk regarding Dogecoin can disrupt all technical and fundamental analysis. Thus, always read our DOGE predictions before making any investment decisions.
There is speculation that Elon Musk will integrate Dogecoin as a payment system on Twitter. If it happens, then the Dogecoin price will surge in the next few years. However, you should not invest based on these speculations, at least for the long term.
Please note that DOGE does not have a fixed market coin supply. That means it will not depend on demand and supply in the market like other digital assets such as BTC or ETH.
Experts suggest a volatile year ahead, so meme coins will be more volatile than other cryptocurrencies. If you are experienced enough, only then put your money on cryptocurrencies like DOGE; else, choose blue chip digital assets such as Bitcoin or Ethereum for the long term.