Increased Optimism From Traders
Dogecoin (DOGE) witnessed an impressive surge in December last year, with its price exceeding $0.45. Since then, though, it has retreated by approximately 60% and currently trades at around $0.18.
Despite the evident downtrend in the past few months, many investors remain bullish on the OG meme coin.
Overwhelming Imbalance in Trading Activity
Around three-quarters of Binance Futures traders who have opened DOGE positions are expecting price gains in the near future.
- The overwhelming imbalance between long and short trades may signal a contrarian risk – when most bet up, the market might surprise with a move in the opposite direction.
Price Predictions
Crypto X also seems predominantly positive on DOGE’s future, with multiple industry participants envisioning a resurgence in the short term. Crypto VIP Signal recently claimed that the meme coin “has broken the resistance area and is now retesting it.”
“You can accumulate some DOGE during this retest, and we can expect a continuation of the upward movement after some accumulation,” they added.
Trader Tardigrade also gave their two cents. The market observer pointed to the declining RSI ratio to envision a price explosion to as high as $1 in the following months.
The Relative Strength Index (RSI) measures the speed and change of price movements and varies from 0 to 100. Readings below 30 suggest Dogecoin might have entered oversold territory, meaning it could be gearing up for a rally. The RSI has plunged below 40 in the past several hours and is nearing the bullish zone.
Conclusion
The overwhelming optimism from traders, along with the potential launch of a spot DOGE ETF in the United States, may signal a contrarian risk. While the trend in the past few months has been downward, many investors remain bullish on DOGE’s future, with some predicting a price explosion to as high as $1 in the following months.
FAQs
Q: What is the current price of DOGE?
A: The current price of DOGE is around $0.18.
Q: What is the trend in the past few months?
A: The trend in the past few months has been downward, with DOGE’s price retreating by approximately 60%.
Q: What is the potential launch of a spot DOGE ETF in the United States?
A: Grayscale, Bitwise, and Osprey Funds are among the entities that have filed to introduce a spot DOGE ETF in the United States. The odds of approval before the end of the year are estimated at slightly under 70%.
Q: What is the Relative Strength Index (RSI)?
A: The RSI measures the speed and change of price movements and varies from 0 to 100. Readings below 30 suggest Dogecoin might have entered oversold territory, meaning it could be gearing up for a rally.
Q: What are the price predictions for DOGE?
A: Some industry participants are predicting a price explosion to as high as $1 in the following months, while others are more cautious, suggesting a potential rally to around $0.45.
