Dogecoin (DOGE) Price Prediction: Are the Bulls Set for Extra Recovery Gains?

Dogecoin's [DOGE] price has faced significant pressure after hitting its yearly high of $0.22 in March.

Dogecoin [DOGE] price has seen immense selling pressure after hitting its 2023 high on March 28. But, towards the weekend, the meme coin showed signs of recovery. However, investors seemed to be de-risking their portfolios.

After hitting its yearly high of $0.22, DOGE price began to slide. The recent market dump also dragged it lower to hit its early 2024 lows of $0.08, adding another 40% loss on the charts. But, like the rest of the market, DOGE’s recovery was over 30%. It also managed to reclaim a crucial resistance and a mid-range level of its declining channel pattern. So, are the bulls set for more recovery gains?

DOGE price showed strength at the channel’s range-low at $0.08, as evident by the long candlestick wick. But, the key market edge, at the time of writing, for further recovery was flipping and defending the mid-range as a support.

DOGE price mid-range defense eyed for next target

At press time, the mid-range had been reclaimed and defended. This could set DOGE to aim for the next bullish target and the range-high at $0.12. Such a move would add another 18% gains to the recovery.

However, key price chart indicators did not support the above bullish thesis, at least not at press time.

Historically, whenever DOGE has climbed above the mid-range, demand, as shown by RSI (Relative Strength Index), and inflows, as highlighted by CMF (Chaikin Money Flow), were above or around average.

An extra pump would only be possible if demand and inflows also surged.

DOGE investors de-risking portfolios

According to Coinglass data, DOGE has seen $60 million in outflows this week. This was a result of investors’ risk-off approach during the recent carnage. However, the outflows eased towards the end of the week, suggesting a possible trend reversal.

But, a stronger price uptrend that could tip DOGE to break above its overall downtrend might take a bit longer.

The weak momentum was also likely due to the declining Open Interest (OI) rates.

DOGE’s OI dropped from its March peak of over $2 billion to below $500 million, at press time. This showed a lack of liquidity injection on the derivatives front to fuel the memecoin and help reverse its downtrend.

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