Dogecoin (DOGE) price didn’t perform well this week as it dropped from a weekly high of $0.35 to $0.33. Even the market cap isn’t doing much as it sees a negative 0.35% surge today with a 21% drop in trading volume to $1.5 billion.
Still, many are waiting for a miracle, which some hope will help DOGE hit $1 next month. But then, is this price target realistic?
Dogecoin’s $1 Dream: Hype or Reality?
Right now, the price is still 15% below its all-time high, with its market cap already 72% of its peak valuation of $73.8 billion in 2021, now sitting at approximately $49 billion, according to CoinMarketCap.
If we look at the 4-hour price charts, we see a clear trendline resistance (TL LQDT), which was previously holding the price action in check. But the price recently broke through this line to the upside, which means the price is ready to change direction.
However, it dropped when it got to $0.42 and started consolidating between $0.30 and $0.33 since Jan 27.
Meanwhile, there is a support level at $0.295 which represent a strong buying interest. The Relative Strength Index (RSI) is moving from oversold to a 50% average level but with a very low momentum.
It’s also safe to note that this month saw multiple bearish divergence signals in mid-January, indicating exhaustion among buyers before the latest pullback.
If DOGE wants to get to $1, which is a 67% surge from its current price, it would need a lot of confidence from investors to break the $0.4 resistance, and that could give it a massive push.
DOGE ETH Could Get Interest
Another possible influence we can consider is the fact that Bitwise recently filed for a Dogecoin ETF. It received approval from the SEC today and could soon start to attract institutional investors and renewed demand from retail traders.
Meanwhile, popular trader WSB Trader also believes DOGE price stands a 60% chance of reaching $1 by the end of January. Although this prediction didn’t come through, it still looks solid for the month of February.
“Last Chance to buy $DOGE below $0.40… More than 60% chance it hits $1 by end of Jan. He said in his tweet.
To sum it up, the $0.40 resistance is a zone to look out for. If DOGE can break through $0.40 with high volumes, it can target even higher values, possibly $1. If not, it could retest the $0.30-$0.32 level of support.
Also Read: XRP Records $434 Billion in Transactions Daily. Here’s How.
Disclaimer: This report is not financial advice but for informational purposes only. Always do your own research or consult with a professional before making any investment decision.
