- The bears have seemingly taken over in the recent price charts of Dogecoin (DOGE).
- However, certain narratives and forecasts from popular technical analysts paint a bullish picture for the OG meme coin in the short- to medium-term trend.
The Bear Controls the DOGE
Dogecoin (DOGE) continues cruising on a downward trajectory after bearish patterns halted its momentum on the daily chart in the past month. A double top formation notably appeared, and the 14-range Relative Strength Index (RSI) displayed an overbought condition within the timeframe.
Additionally, the 50-day moving average (MA) has remained below the 200-day MA. The scenario indicates the persistence of a bearish trend in the foreseeable future.
As of Thursday morning (UTC), Dogecoin has stalled in the daily chart, fluctuating only by between a $0.1644 low and a $0.1718 high in the last 24 hours before going back to the same price it had within the same period yesterday at around $0.17.
Trading volume has also declined by over 10% as only $943 million worth of DOGE moved across wallet addresses in a day. Meanwhile, the bearish conditions have subdued the token’s market cap at $25.49 billion, reflecting a significant drop from the year-to-date peak of $61 billion reached in January.
At this rate, DOGE price is down by over 10% in a week and 24% in the month, but it’s still well above 35% in the one-year frame. So far, it’s over 76% less than its all-time high of $0.7376 four years ago.
With these, are hopes for Dogecoin eventually hitting the $1 dashed, or are we looking for a reversal soon?
Being Left Out From the Narrative
Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and other mainstream altcoins are now experiencing considerable growth in terms of integration in traditional finance and institutional adoption. However, DOGE has been seemingly left out of the narrative without any major news or hype boosting it as of late.
Moreover, promises of its integration in payment systems such as in X (formerly Twitter) and Tesla, as well as a potential inclusion in the US Department of Government Efficiency’s (D.O.G.E.) efforts to promote transparent spending through digital asset adoption, have become stale.
Dogecoin (DOGE) ETFs Could Turn the Tide
On the other hand, all hope is not lost as the crypto community awaits the US Securities and Exchange Commission’s (SEC) final decision on the pending spot Dogecoin exchange-traded funds (ETFs) applications, which are due in October. According to Bloomberg Intelligence ETF expert James Seyffart, the DOGE-based investment products filed by Grayscale, Bitwise, and 21Shares have an 80% chance of approval. He grounded his favorable forecast in the regulator’s acknowledgment of their filing, their status as a commodity, and the fact that they currently have related futures contracts regulated by the Commodity Futures Trading Commission (CFTC).
Narratives have undoubtedly driven Dogecoin’s pumps over the years. More often than not, these have invalidated even the most sound technical analyses. Hence, the few weeks leading to the decision of the DOGE ETFs could signal a critical turnaround in broader market sentiment. These could refresh the hype for the token and potentially reignite engagement from the crypto community.
From a technical standpoint, analysts are eyeing a potential reversal of the bearish price trend in Dogecoin. Ali Martinez, a popular crypto analyst on X, earlier informed the crypto community about a budding bullish breakout in the 12-hour frame.
Furthermore, CryptoELITES and Trader Tardigade have presented several scenarios suggesting Dogecoin’s potential to cross the $4 to $5 range. The former based the prediction on the momentum within historical wedge formations, while the latter grounded the forecast on multi-year Fibonacci cycles.
