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- After a strong weekly rise, DOGE’s daily chart turned red.
- The Fear and Greed Index signaled a possible sell-off.
After a massive weekly gathering, Dogecoin (DOGE) disappointed investors as its price fell over the past 24 hours. Nonetheless, memecoin was still on track to test its all-time high.
Will DOGE set a new record high or leave investors waiting for more?
Dogecoin to test its ATH?
According to CoinMarketCapDOGE price soared more than 20% last week. The uptrend ended in the last 24 hours as memecoin saw a 5% price correction.
At press time, memecoin was trading at $0.4373, making it the seventh largest cryptocurrency.
Meanwhile, MilkyBull Crypto, a popular crypto analyst, published a tweet revealing that DOGE was close to its all-time high.
Interestingly, user X commented on the post, asking what are the chances of DOGE hitting $5. In response, MilkyBull Crypto mentioned that it was unlikely, but the comment also stated that anything could happen.
DOGE’s next move
Meanwhile, DOGE sort volume dropped by 15%. This is good news, as a drop in volume in the midst of a price decline usually portends a reversal in an uptrend.
But its weighted sentiment has declined – a sign of growing bearish sentiment around Dogecoin.
Source: Santiment
Another bullish metric was Open Interest, which fell with its price, suggesting an upcoming trend reversal.
However, the DOGE funding rate increased, indicating that derivatives investors were actively buying the memecoin at its discounted price.
Source: Santiment
AMBCrypto’s review of Dogecoin’s daily chart revealed that its price was moving in an ascending channel and at press time was testing the pattern’s resistance.
The MA Cross indicator revealed a clear bullish advantage in the market, suggesting a successful breakout. If this happens, then DOGE testing its ATH could soon become a reality.
Source: TradingView
However, even if the memecoin exceeds its ATH, the chances of a correction thereafter remain.
In the event of price discovery, investors could see DOGE fall again to $0.367 after setting a new ATH.
Read Dogecoin (DOGE) Price Prediction 2024-2025
Notably, DOGE may not test its ATH anytime soon. This appears to be the case when the Fear and Greed Index has entered the “extreme greed” phase.
Whenever this happens, it indicates that the chances of a price correction are high.
Source: CFGI.io