Historical Cycle of the Governor
Despite the voices of concern, few analysts have a different view on memecoins, especially Dogecoin [DOGE].
Analysts have pointed out that Dogecoin’s historical cycles are a pattern and that Dogecoin will rebound. For example, Vision Pulse shared his analysis of Dogecoin’s historical patterns and pointed out that,
“I’m worried about the#Altcoinmarket.”
Analysts say DOGE will recover with a 400% gain, repeating the 2020 cycle. Judging from historical performance, this meme coin will not fall for long.
Another analyst, Javon Marks, made a similar analysis, noting that DOGE’s cycle could repeat itself, stating,
"What would you think if I told you#dogecoinwas performing exactly like it did in the last cycle? Take a look. Dogecoin was up nearly 400% in 2020, hit the .236 retracement, then dropped 50% as BTC.D rallied. Look what's happening now."
What the DOGE price chart suggests
As of this writing, Doge is trading at $0.107, down 4.97% on the daily chart.
Moreover, memecoin has fallen 17.86% on the weekly chart after a month-long downtrend. Likewise, its trading volume has dropped 20.48% to $713.6 million in the past 24 hours.
Therefore, the analysis of AMBCrypto shows that DOGE is experiencing a strong downward momentum. The relative strength index is 34, while the MA based on the RSI is 49.
This suggests that the market is facing more selling pressure and sellers are dominating the market.
The RSI entering the oversold territory provides a buying opportunity and may activate a trend reversal by increasing buying pressure.
Moreover, the Directional Movement Index shows that the bearish momentum is decreasing. Although the negative index of 19.7 is higher than the positive index of 17.9, the negative index is decreasing.
Likewise, the neutral index is above the negative index at 29. This suggests that a reversal is likely as prices fall into oversold territory.
Looking further, our analysis of Santiment shows that the funding rate aggregated across exchanges is positive 0.005%.
This shows that long positions are paying shorts to maintain their positions, which suggests that traders are bullish and expect prices to rise soon.
Likewise, outflows from large holders also fell from a high of 192 million to 42 million. This shows that large Dogecoin holders are not selling their assets, indicating their confidence in a potential trend reversal.
Therefore, if DOGE closes above the critical support at $0.105 on the daily chart, the meme coin will reverse the trend and attempt to challenge the important resistance at $0.13.
