Dogecoin (DOGE) Price Prediction: Will DOGE Recover After 32% Drop in Two Weeks?

Dogecoin [DOGE] has been on a wild ride over the past four weeks. As the broader cryptocurrency market witnessed volatility, DOGE was also engulfed in the price swings, leaving investors concerned about its future.

Dogecoin’s (CRYPTO: DOGE) price has been highly volatile over the past four weeks. As the broader cryptocurrency market witnessed volatility, DOGE was also engulfed in the price swings, leaving investors concerned about its future.

Here's a closer look at DOGE's price movements, key metrics, and what they might indicate for the token.

1. Bearish Trend, But…

DOGE's price has dropped by 32% in the last two weeks, showcasing a descending trendline, which is typically indicative of a bearish market. However, the recent price movements suggest a potential bullish reversal as the price has surged by 8% in the last 24 hours.

This surge might be indicating a renewed interest in DOGE from investors, despite the overall bearish market conditions.

2. Technical Analysis

Dogecoin was trading at an average price of $0.1247 at press time. Its 24 hour trading volume stood at around $851.62 million, with a market cap of $18.03 billion.

A glance at the technical indicators reveals a stochastic RSI in the oversold zone, which could precede a bullish reversal. However, the moving average convergence divergence indicator shows fading bearish momentum, as the recent bearish bars are fading with time.

3. Social Volume, Development Activity May Fuel Reversal

According to Santiment, a platform that tracks on-chain metrics, DOGE's social volume and development activities have spiked.

This spike suggests a renewed interest in the Dogecoin community. The surge in development activity could signal ongoing improvements related to DOGE, which could potentially attract more investors.

4. Liquidation Spikes: Short Squeezes?

Coinglass' liquidation map data shows several spikes in both long and short liquidations for DOGE, suggesting extreme volatility and potential short squeezes.

This scenario can fuel rapid price surges, as seen in the recent DOGE rally.

Additionally, the long short ratio data shows a positive trend, indicating that long position investors are in control of the market at this crucial level.

The buying pressure may intensify the bullish pressure on Dogecoin, hence surging the price.

News source：https://www.kdj.com/cryptocurrencies-news/articles/dogecoin-doge-price-prediction-doge-recover-drop-weeks.html

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