Key Insights:
- Dogecoin price predictions show the meme coin’s price aims for $4 before possibly dipping below $1.
- Current consolidation suggests short-term uncertainty, but long-term growth potential exists.
- Dogecoin’s market cap remains strong, with DeFi activity seeing decline.
Dogecoin price predictions suggest the meme coin could go up to a maximum of $4 before, possibly going down below the one dollar point.
The initial chart gives a multi annual picture of the price change of Dogecoin. The long-term trend has been shown since the inception of Dogecoin in the monthly chart.
Both the price of Dogecoin is labeled with a number of interesting points that signal important moments when the major movement in the price has happened either up or down.
Following several years of stagnation, Dogecoin gained impressive growth in the first months of 2021, and this was the start of the fierce rally to gain new heights.
The chart indicates the drastic rise in price of Dogecoin in the first quarter of 2021 brought by mass media coverage and the power of celebrities such as Elon Musk.
After this boom, the price of Dogecoin appeared to stabilize at the range around the $0.20 mark after having surged to more than a $0.70.
Per the chart, Dogecoin could be on the same track as the 2021 surge. The orange dotted line indicates a trend line that has been assisting the upward trend of the cryptocurrency in the last few years.
Dogecoin has at some moment tested this trendline and has made some upward progress as it hits support levels.
Though the analysis cannot be used to state with certainty the steps that Dogecoin will take in future, the technical structure in this diagram implies the cryptocurrency has the potential to extend its journey before it faces major opposition.
It should be mentioned that the price target of $4 is not within the range that we have witnessed over the years. Dogecoin would have to overcome multiple layers of resistance scenarios on its way to this level, though the level of resistance located at the $1.50 to 2.00 level would most probably be the main one.
But since the trend is significantly between the two extremes going up, as the chart shows, then the $4 is a possible point of interest in the short run when such trend is well maintained.
Dogecoin Price Prediction: Current Price Action Showing Consolidations
Recent data shows that the Dogecoin is priced at approximately $0.1674. As evidenced by the second chart, the closer view of the price action of the Dogecoin in 1-day timeframe, there has been a consolidation of the price after several drastic fluctuations in the price.
During the last 24 hours, Dogecoin has fluctuated around the same price level with a slight decrease of time between a falling price of $0.172 to a highest low of $0.164 after which it starts going up again.
The tendency indicates that Dogecoin is in a correction process, because it has several times tested resistance level, but did not break it.
A slight downtick can also be noted in the chart represented by the red and green candlesticks which implies that pressure of selling could overpower the pressure of buying at least in the short term.
It is worth noting that the Dogecoin price is trading at a pivotal support point in the $0.17 area, with a consequent bearish level of $0.16 likely to be achieved in case the price does not manage to secure additional upside potential.
The latest information on trading volume shows that the market mood is neutral to bearish since the volume has decreased in last 24 hours. Also, the market cap of Dogecoin amounts to about $25.26 billion and its trading volume is about $1.13 billion within 24 hrs. The minor fall in volume of trading might be an indication of less activities of the traders and this may be indicating a stalling of the bullish run.
Total Value Locked Show a Modest Contribution
A different DeFiLlama chart allows exploring the total value locked (TVL) in the Dogecoin decentralized finance (DeFi) ecosystem. As of writing this report, Dogecoin’s TVL stood at about $3.17 million. It is a comparably minor number in comparison to other more noticeable DeFi assets, yet it may be considered an illustration of the fact there is some interest in using Dogecoin on the decentralized opportunities.
In the chart, one can also decline the comparison that TVL has decreased by 3.64% in previous 24 hours because of the current prevailing market situations.
Although this figure does not necessarily point to potential price action in any direction, it is some type of context in the headway of Dogecoin into the larger crypto landscape.
Dogecoin currently stands at 9 on CoinMarketCap with its market capitalization standing at around $25.26 billion at the time of writing.
Nevertheless, in spite of its most recent difficulties, Dogecoin is still holding a very high position in the rating among cryptocurrencies. It has 149.73 billion DOGE in circulation, which is nearly equal to its fully diluted valuation (FDV) and therefore, the total supply of Dogecoin is mostly circulating.
According to CoinMarketCap price statistics, Dogecoin has recorded a marginal decrease of 1.6 percent in its price in the last 24 hours.
In the past 24 hours, the coin volume has been moving in a tight range and its recent trading activities indicate that the investors are cautious that could be brought about by uncertainty in the vast market.
Nevertheless, the fact that Dogecoin continues holding such a huge market cap despite the recent declines proves that it is one of the most popular assets in the crypto realm that people follow.
