Dogecoin price made a strong comeback last week after spending about two weeks in a steep consolidation. DOGE has now stalled again near the $0.40 level, but technicals and falling social sentiment score point to a strong rebound. So, can it jump to the next psychological point at $0.50?
Dogecoin Price To Benefit From Falling Social Sentiment
One potential catalyst for Dogecoin price is that its social sentiment has dropped to -0.60, much lower than where it was in March. This is an important metric that looks at the number of mentions on social media platforms like X.
The social sentiment score often rises when a cryptocurrency is in a strong bullish trend as users maintain their optimism. In most cases, however, peak optimism often leads to sharp reversals, possibly as smart money investors start to sell.
At the same time, some cryptocurrencies often rise when the social sentiment score plunges. Again, the theory is that some smart money investors use the deterioration of the price movement to accumulate the coins. As shown below, Dogecoin price soared in November after the social score remained at a low level.
In line with this, data by CoinGecko and CoinGlass shows that Dogecoin’s daily volume and open interest are much lower than their last month’s highest level.
DOGE Is Cheap, According To The MVRV-Z Score Indicator
Meanwhile, the market value to relative value z-score indicator shows that the value of DOGE is still cheap despite soaring by 365% from its lowest point in September.
Glassnode data shows that the coin has a score of 2.40, down from November’s high of 2.70. The MVRV-Z score indicator compares a coin’s market value with the relative value and then standardizes the result using the Z-score. A figure below 3 is a sign that a cryptocurrency is cheap.
Additionally, the MVRV score has formed a cup and handle chart pattern, pointing to a potential rebound.
Dogecoin Price Technical Pattern Points to More Gains
The 4H chart shows that the DOGE price has more upside to go in the near term. It rose from $0.3033 and peaked at $0.40 on Saturday.
Dogecoin has risen above the 50-period moving average. In most cases, an asset is said to be bullish when it is above this average. The coin has also formed a bullish pennant pattern, which is made up of a long line and a triangle pattern.
A clear break above $0.3986, the upper side of the pennant pattern, will point to more gains, with the initial target being at $0.4800, its highest swing in December. That momentum could push it to the psychological level at $0.50, which is about 30% above the current level.
The bullish DOGE price prediction will become invalid if the token drops below the key support at $0.34,17, the highest swing on December 25.
The post 3 Signs Dogecoin Price Could Soar 30% in the Coming Weeks appeared first on CoinGape.
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