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The possibility of a Dogecoin market reversal has crypto observers interested in the meme coin. Although it posted some gains in recent days, CoinCodex’s price prediction still expects a 13% decline, which could push DOGE further to $0.088742 by October 10, 2024.
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This despite an interesting observation from cryptocurrency analyst Master Kenobi. As Kenobi says, any downtrend retreats over time, which in turn means the bears can exhaust themselves, paving the way for a recovery.
The #DOGE The bear market consisted of three major downward trend cycles.
Whether it is a coincidence or not, the first cycle lasted 540 days, almost a year and a half; the second lasted 364 days, exactly one year; and we are now closing out the third downward trend cycle, which lasts approximately 182… pic.twitter.com/GToZmRaPCh— Master Kenobi (@btc_MasterPlan) September 9, 2024
He explained that the initial downtrend lasted 540 days, or about 1.5 years, while the second cycle lasted 364 days. In contrast, he said, the ongoing downward trend has lasted only 182 days, or about six months. In fact, the shrinking length of such cycles could be seen as a signal of a momentum shift, setting things up for a likely bull run.
Dogecoin price action
Dogecoin currently trading at $0.1003, up 6% in the last seven days. The price had bounced back from a support line at $0.089 and a bullish falling wedge pattern was identified on DOGE’s daily chart. The price of Dogecoin would quickly shoot to $0.15 if the level were to remain above $0.10, the chart suggests.
Fear and market sentiment
Despite the recent upward movement, there is still fear in market sentiment. The Fear & Greed Index is currently at 33 and illustrates how much fear investors have. This is despite Dogecoin’s performance over the past 30 days, which was 15 green days higher.
DOGE’s price movements, on the other hand, tend to be quite stable, as its positivity rate stood at 50%. Volatility remains very low at 4.38%. While stability can be reassuring, it also suggests that DOGE lacks the momentum for a major breakout.
Mixed signals in the market have made investors wary of taking any particular decision. Investors appear to be doing a balancing act between short-term optimism and longer-term risks. The low volatility and an equal number of green days indicate consolidation without any reversal signals.
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Conflict in predictions
While some short-term indicators reflect the possibility of a rally, longer-term forecasts are bearish. According to CoinCodexthis cryptocurrency could fall by 13.78%, bringing Dogecoin to $0.088742 in October 2024. The above prediction is really at odds with this token’s current bullish momentum.
Dogecoin is therefore at a crossroads. While the short-term indications may point to bullish momentum, technical indicators and recent price action indeed support a plausible rally for the meme crypto.
But until then, the bearish long-term forecasts remain, with market fears lingering; it would be best to err on the side of caution. Investors will do well to keep a close eye on short-term price movements and broader market developments before making any serious moves.
Featured image of StormGain, chart from TradingView
