Dogecoin price analysis for April 1 shows a clear bullish trend with positive price affirmation in the coming days of the new month.
The price uptrend has been encouraging, although there is a significant hurdle that the meme cryptocurrency faces that may likely prevent any further move upward.
However, should there be a successful flip of this barrier and a robust foothold is established, the key to unlocking a massive price increase for Dogecoin is on the way.
The bulls are making A Strong Comeback
The previous downward trend in price from September 2021 to March 22 became the catalyst for subsequent price action for the meme token. The subsequent price action created three unique lower highs and lower lows, which played a role in revealing the price pattern of the DOGE.
The technical sequence predicts a 34% price movement to $0.178, obtainable after adding the distance between the high and low swing to the breakout point, $0.132.
Dogecoin’s price trend for March 24 saw it move past the upper trend line, signaling a price breakout. Afterward, the leading meme coin rallied by 18%, but the bullish move was halted due to the 100-day Simple Moving Average (SMA), which was $0.144.
In the coming days, investors can look out for the price of Dogecoin to consolidate under the given situation. But a successful reverse of this resistance zone into a support level is rare.
This would be crucial as the bulls attempt to reach the $0.132 mark as earlier forecasted.
Upon reaching the $0.132 target price, the DOGE has a chance to move sideward before embarking on the next significant barrier: attaining the 200-day SMA. The upside will not move further if the bulls can not sustain the momentum.
But if the bulls pull themselves together, there is a likelihood of DOGE making a bullish run to outdo the point of control for 2021 and 2022 and reach $0.260. However, this is a hurdle that the bulls are unlikely to cross because the bulk of the volume for 2021 and 2022 has already been traded.
DOGE futures chart. Source: TradingView
To support the almost 80% upward movement to $0.260, the 365-day market value to realized (MVRV) value model will come into play. The MRVR model is a metric used to analyze the average profit and loss of investors who bought DOGE tokens last year.
A negative value below -10% indicates that short-term holders of the token are losing, giving long-term holders the chance to buy as many tokens as possible at a discount. Therefore, the -10% zone is regarded as the opportunity zone.
Currently, the 36-day MVRV is swinging at the -38% zone, a sure indicator that most holders at this level are at the losing end.
Therefore, as long-term holders accumulate tokens at a discount, their actions further support the outlook mentioned above from the technical perspective.
Notwithstanding the possibility of a downward trend coming up along the way, the bullish outlook is foreseen to be the critical factor for price stability.