The price of Dogecoin has been continuously consolidating within a definite falling wedge pattern, indicating a possible breakout. Any decisive move over the upper trend line would be a catalyst for a further uptrend in price.
Moreover, as April 20th is widely celebrated as “meme day,” the price of the popular meme cryptocurrency is pumping high. And investors are advised to keep a close watch on the price performance of Dogecoin, which has the full support of the famous Doge father, Elon Musk.
Higher Price Retracement is Underway
The price of Dogecoin has previously crashed by 85% from its high of $0.740, and this downswing has led to the development of three different lower and higher lows. A wedge pattern will be revealed when the lows are joined together using trend lines.
The technical formations formed in the price movement predict a 68% upswing in the value of the meme token, which can be calculated by joining both the high and low swings together connected to the breakout point.
An exciting event appears, showing the DOGE is already hovering above the upper trend level, but no confirmation of the breakout is yet ready. However, if a breakout occurs at $0.140, further price assessment shows that the next target following a 68% upswing will be $0.233.
The most crucial metric to show the on-chain performance of the price of Dogecoin is the 365-day market value to realized value (MVR) because it depicts the bullish outlook for the meme coin.
The MVRV is an on-chain metric used to evaluate the average gains and losses incurred by investors who took a plunge on the DOGE tokens last year.
Meanwhile, the Santiment market research shows that a value of not more than -10% indicates short-term traders are selling at a loss and are not likely to trade their assets. This is because the traders in this situation would rather wait than have their assets traded at a lower price than intended.
Similarly, any further move that appears to be above the -10% mark indicates that long-term investors are accumulating Dogecoin as much as possible. This is where the accumulation begins.
Since October last year, the 365-day MVRV has been below the zero line for the leading meme cryptocurrency, which has been stuck below -30% since December of the same year. This indicates that the altcoin is widely oversold and why it is expected to rally in the next couple of days.
The price of Dogecoin has constantly been subjected to market variables in whatever form, and the period of decline or upward price trend is precisely what makes DOGE an unpredictable asset amongst other altcoins.
Notwithstanding the bullish narrative for the meme coin, if there is a weekly candlestick close that falls under the $0.078 mark, the bullish outlook will be invalidated. This scenario signals the potential crash of the DOGE to $0.048, which would keep traders on their toes as they look for a possible way out.