Dogecoin (DOGE) is entering a decisive time window. With a mix of bullish momentum and bearish risks, the last two weeks of September 2024 will define whether the price of DOGE surges to recent heights or faces a significant decline in October 2024.
This article explores Dogecoin’s recent price movements, key technical indicators, and market sentiment, providing a comprehensive outlook based on our recent Dogecoin price prediction.
Note – The maximum price ever recorded for Dogecoin was $0.6905, back in May 2021, which means the current price is down by 85.39% from its all-time high.
Dogecoin is the leading meme coins, followed by Shiba which is often called the ‘Dogecoin killer‘. It is interesting to track both DOGE and SHIB, as leaders in the meme space, as a barometer for risk appetite in crypto markets.
RELATED – Shiba Inu Coin prediction for 2025.
This is the point: a strong rise in the price of DOGE often coincides with ‘risk on’ in crypto markets. That’s why it pays off tracking DOGE and analyzing its price behavior and chart patterns.
Any chances of DOGE reclaiming its 2021 highs?
At the time of writing, the 4-hour Chart shows that DOGE is trading in a diverging triangle, a pattern marked by increasing price swings, suggesting a potential breakout as volatility rises and the market reaches a point of indecision.
If a breakout occurs, we could see DOGE attempt to reclaim the $0,11 to $0,12 area towards the end of 2024.
Relative strength index (RSI) and moving averages
The 14-day RSI for Dogecoin currently sits at 41.91, indicating a bearish market condition. On the weekly chart, the RSI is lower at 38.58, which also indicates a bearish trend though leaning towards oversold conditions.
Historically, this has been a sign of potential accumulation before a price rise.
In addition to RSI, moving averages (MAs) present a bearish signal, with Dogecoin’s price trading below all key moving averages on the daily chart.
However, market sentiment could shift rapidly if DOGE reclaims the $0.1060 resistance marked by the 20-day simple moving average (SMA).
On-chain metrics and investor sentiment
Despite the current market downturn, positive on-chain metrics are helping fuel optimism for $DOGE.
Large transactions, particularly $1-$100k, have risen by 3.96%, while transaction above $100k have risen by 0.09%, signaling strong interest from major investors.
Additionally, 4.17% of #dogecoin holders are “in the money,” indicating that many investors are currently profiting from their positions.
Moreover, the balance of addresses holding between 1 million and 10 million DOGE coins has increased, suggesting that accumulation is occurring both on-chain and across exchanges.
Historically, such accumulation has reinforced a bullish bias, increasing the likelihood of an upward price movement.
Buyer activity points to potential upside
Buyers have also shown a strong willingness to invest in Dogecoin at current levels. Current Dogecoin exchange on-chain market depth data reveals that investors are ready to purchase 500 million DOGE coins when the price drops to around $0.099, amounting to a $50 million investment.
This buyer interest indicates that any dip below $0.10 could be short-lived, with the potential for a rapid rebound.
Analysts believe that if these strategic purchases continue, DOGE could reclaim a significant portion of its recent losses and rally by nearly 50%, reaching the $0.15 level.
However, this bullish outlook depends heavily on Dogecoin holding its key support at $0.10. If this level fails, the price could drop towards $0.091 or lower.
September always a tough month for Dogecoin
Historically, Dogecoin has experienced mixed performance during September, with 40% of previous September closing higher than the opening price.
However, December has been a more favorable month for the coin, with DOGE ending the month higher than it started 50% of the time over the past twelve years.
On the contrary, June has been the worst month, with DOGE closing lower 75% of the time.
Looking ahead, analysts have ambitious long-term price predictions for Dogecoin. The forecast for October 2024 estimates that DOGE could reach $0.2410, with the potential to trade between $0.2410 and $0.4950.
In the longer term, the price could rise significantly, with projections of $1.91 by the end of 2024.
The key resistance and support levels to watch
According to technical analysis, $0.0974 serves as a crucial support level for DOGE. If the price falls below this, the meme coin could see further declines.
However, a sustained move above the first major resistance at $0.1146 could lead to a breakout, pushing the price towards the next resistance level at $0.1388.
If Dogecoin can break past this resistance zone, it could experience a 55% surge, potentially reaching the $0.15 level.
On the flip side, failure to hold its current support could result in a 30% drop below the August lows of around $0.08.
Final verdict – what to expect as we head into October 2024
Although on-chain metrics, investor sentiment, and large buyer activity indicate that bullish momentum is building despite the current bear pressure, the risks are still present.
Looking at all the factors outlined in this article, Dogecoin is at a crucial crossroads, with both bullish and bearish scenarios on the table.
If DOGE can successfully hold its key support around $0.10 and break through the $0.1060 resistance, a larger price rally could follow, potentially pushing the coin to $0.15 or higher.
However, failure to hold this support may lead to a significant drop towards $0.08, erasing recent gains.
The next few weeks heading into October will be critical in determining whether Dogecoin embarks on a new macro uptrend or faces further declines.
