Everything You Need to Know About Dogecoin (DOGE) This Week
The performance of Dogecoin (DOGE) in May was not particularly strong. Despite a 12.63% surge in April, the price movement has been steep lately, with growth constrained by the critical resistance level of $0.16.
Currently, the price is close to the all-time high (ATH) of $0.17 reached in April 2021. Breaking this level could potentially lead to a massive rally to $1 or even higher. To avoid missing the big uptrend, here are some crucial indicators to watch:
1. RSI: The relative strength index (RSI) measures buying versus selling pressure on a scale of 0 to 100. Currently, DOGE sits in the “neutral” zone, close to “weak,” with an RSI index around 50. A move closer to 70 would indicate a stronger market sentiment, suggesting a potential bull run on the horizon.
2. Whale Activity: Monitoring large holders or “whales” is crucial as they can significantly influence prices. On May 31, Dogecoin whales bought over 700 million DOGE within 72 hours, amounting to around $112 million. If the surge in whale activity continues, the price is more likely to set on an uptrend.
3. MVRV: The Market Value to Realized Value (MVRV) ratio compares an asset’s market value to its average acquisition price or realized price. The current MVRV value for Dogecoin is 1.55, indicating there is enough potential for a rally at this point.
4. GameStop Signals: Dogecoin’s performance is often linked to GameStop (GME), known as a “meme stock” in 2021. A surge in the GME price has historically triggered a DOGE bull run. In May, GameStop almost doubled in price, peaking at $46 compared to $11 in April.
5. Musk Factor: Elon Musk has a history of influencing DOGE prices with his tweets. In April 2021, Musk’s tweet about SpaceX putting a Dogecoin on the moon propelled DOGE from $0.06 to an all-time high of $0.73 in a month. Speculation around a potential partnership between Musk’s company X and DOGE has also caused price surges in the past.
6. Price Breakout: Analyst Ali Martinez shared his view that the current bearish sentiment in Dogecoin is similar to what was witnessed in February, right before the price jumped 200%. This could indicate a massive surge in June. Martinez points out significant resistance between $0.166 and $0.171, but believes that once overcome, DOGE has the potential to double in price, with the next key resistance around $0.322.
Looking at the daily chart, Dogecoin seems to have escaped the correction zone and is ready to reverse the trend. The main question is whether the DOGE price will rebound this week or at a later date. Keep a close eye on these indicators to stay informed about Dogecoin’s potential movements.