Dogecoin price has retraced 12.2% over the past 24 hours after hitting a new yearly high of $0.4346. As traders take profits on Bitcoin and large caps, a rare indicator on the Dogecoin chart suggests the meme coin could hit $1 in November. This would be a 170% increase from the current price of $0.3679. Will DOGE achieve this and climb to a single-digit price this month?
Rare Technical Indicator Signals Major Breakout in Dogecoin Price
A lesser used onchain indicator called Market Cap to its Realized Cap (MVRV) indicates that DOGE Price still has room to increase. The MVRV Z-Score uses a z-score standard deviation between market value and realized value (MVRV) to identify highs and lows in the DOGE market.
By this measure, the price of Dogecoin reached its lowest level exactly 2 years ago today and has been moving higher. Historically, values above “5.38” indicate the price is overbought, and values below -0.25 indicate the price is oversold.
Currently, the DOGE MVRV Z-score is 2.7 and rising. This suggests that even though dogecoin is quickly approaching the overvalued zone, there is still room to run, which could catapult the price to $1 and beyond.
DOGE Price Rise: Is a $1 Target Achievable This Month?
Dogecoin price is currently 170% away from hitting the $1 mark, and on-chain metrics suggest that goal is achievable this month.
Although the relative strength index (ROI) is overbought at 83.85, the average directional index (ADX), which shows the volatility of a market, is currently at 26 and moving upward. Usually, a reading above 25 suggests high market volatility, which may signal a continued increase in prices.
Crypto analyst Ali Charts also noted that while historically the price of Dogecoin reached its peak after MVRV crossed 78%Today’s price correction reset MVRV to 45.65%, suggesting DOGE still has room to climb.
Key Resistance Levels Dogecoin Must Surpass for $1
Dogecoin price is currently sporting a gigantic cup and handle on the one-week chart timeframe. The cup and handles are usually bullish reversal patterns, and this one hints at DOGE price rising up to $1.5 before hitting major resistance.
However, on the upside, Dogecoin may encounter resistance levels around $0.5 and $0.76, which coincides with its previous all-time high.
On the other hand, $0.35 is a local support level to which DOGE price could fall if declines persist. Below, the resistance-turned-support at $0.2 is strong enough to keep the price elevated in the face of strong selling pressure.
If the price falls below $0.2, the current bullish thesis would be invalidated and the Dogecoin Price Forecast indicates that the meme coin would enter a bear market.
DOGE price is currently retracing, taking a breather before the next move higher. After Trump-Vance issued a circular appointing Elon Musk and Vivek Ramaswamy As heads of the Department of Government Efficiency (DOGE), investors are closely watching the price of DOGE as it could reach $1.
Frequently Asked Questions (FAQ)
Yes, it’s possible. On-chain metrics and technical indicators suggest room for growth. If the bullish momentum continues, DOGE could surge 170% to $1 in November.
The MVRV Z-Score is an on-chain metric that measures the difference between Dogecoin’s market capitalization and its realized capitalization. It helps identify market ups and downs. A rising MVRV Z-score indicates the potential for further price increases.
Dogecoin price fell 12.2% after a strong rally to a yearly high of $0.4346 as traders took profits. However, a rare indicator suggests that there is still potential for further gains.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the gaming industry. His extensive experience includes working with various startups to deliver insightful, high-quality analytics that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across various industries. Outside of his professional activities, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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