Dogecoin (DOGE) is stabilizing around $0.40, but several bullish factors are building behind the scenes. These factors hint at the possibility of a price increase soon.
Dogecoin Faces Short-Term Resistance
After a recent dip below a short-term uptrend, DOGE struggles with resistance, particularly the 21-day moving average (21DMA). This puts the coin at risk of a short-term pullback. A retest of the 50-day moving average (50DMA) near $0.33 seems likely. This level also aligns with key support from 2021.
Low Futures Funding Rates Suggest Reduced Sell-Off Risk
Currently, DOGE futures funding rates are low. This suggests that speculative excess has mostly dissipated, reducing the risk of a major sell-off. According to coinglass.com, funding rates for leveraged futures positions stand at 0.01%, in line with September and October levels. This marks a sharp decrease from previous highs above 0.09%.
Dogecoin Price Could Surge with Bullish Sentiment
If DOGE faces a brief dip, it is likely to be quickly absorbed by bullish investors. Media coverage surrounding Elon Musk and Vivek Ramaswamy’s Department of Government Efficiency (D.O.G.E) initiative continues to bolster optimism. As the shift in the White House approaches in January, DOGE seems poised to maintain a dominant role within the meme coin market.
Major Resistance Ahead for DOGE Price
The first significant resistance for DOGE will be the 2021 record highs of $0.73905, according to TradingView data. However, DOGE might surge much higher. A pro-crypto US administration and growing interest in Bitcoin reserves could provide additional support. Crypto adoption will likely accelerate in the coming years, benefiting Dogecoin.
Will Dogecoin Reach $1?
The question arises: how much higher can DOGE climb? A price of $1 is becoming increasingly likely. However, investors may need to consider even higher potential.
Looking at Dogecoin’s past cycles since 2014 provides clues. These cycles suggest that DOGE can surpass its previous highs. By drawing a Fibonacci extension from the prior bear market, we see that Dogecoin often exceeds the 4.236 Fibonacci level.
Fibonacci Extension Suggests $3 for Dogecoin
The Fibonacci extension from the 2022 bear market lows suggests DOGE could reach $3 per token. This follows the pattern of its 2021 rally, where DOGE exceeded the Fibonacci extension by over 10x.
Could Dogecoin Reach $10?
Dogecoin has repeatedly surpassed Fibonacci projections, which raises the possibility of hitting $10. While this would imply a multi-trillion-dollar market cap, a $100 billion market cap is within reach. A 10x increase from current levels seems realistic for Dogecoin.
The post Dogecoin Price Set to Blast Past $3.0 Soon? Here’s Why That’s Likely appeared first on Cryptonews.
