The price action for Dogecoin on April 28 shows the meme cryptocurrency struggling to break out of the bullish pattern on the weekly price performance chart despite the recent rally it experienced.
However, even if the popular meme token can pull itself out and further move higher on the price chart, Dogecoin will have to flip the primary barrier to reach its desired price destination.
Another Opportunity Provided by DOGE’s Price
About 85% of the total value of Dogecoin has been lost since the previous all-time high it attained in May last year. This has seen its price drop to $0.109 from $0.740 in less than a year. However, the massive price downtrend reflects the crypto market, but the meme coin appears to have remained static more than other altcoins in the red zone.
Industry experts identified the three distinct patterns that the correction has created, which will show a falling wedge price direction when linked together with a trend line.
A further look into the technical formation created will show a 68% upswing set at $0.235, whose value is determined by computing the distance between the first high swing and the low swing to the breakout zone.
Even though DOGE was able to break out through the upper trend line at almost $0.139 on April 26 in the daily time frame session, it still needs to be validated by other performance variables. And if this is done, it signals the beginning of another price uptrend.
Another confirmation will surface after the meme token upturn the $0.159 barrier and push it into a support zone. In this case, investors can accumulate DOGE and move with the flow if the price remains unchanged.
Alternatively, analysts point to -10% and -15% as the points where short-term holders of the meme coin are at a loss. The same condition is favorable for long-term holders as they tend to use this period to accumulate as much as possible. This is where the term “opportunity cost” is found.
Moreover, the technical outlook shows a 365-day MVRV hovering over the price, which indicates that there is a possibility of a trend reversal that may impact the overall price forecast.
That said, the price action may align toward the bulls if the momentum of the DOGE value is sustained or may move toward the bears in the event of another market correction that impacts the overall price direction of Dogecoin.
The coming days may indicate whether investors would benefit from a sustained market recovery especially as the value of the meme token has shown signs of a significant comeback after a somewhat shaky period following Elon Musk’s-inspired price surge. The price surge was brief, and after that came another correction.
Regardless, a rapid crash in the price of Bitcoin could impact the value of most altcoins, especially Dogecoin. This condition can invalidate the bullish theory that could ultimately crash the value of DOGE to $0.048.