Dogecoin (DOGE), the beloved meme cryptocurrency, could be on the verge of an explosive ascent, hitting a price point of $0.50, according to a popular crypto expert known as Altcoin Sherpa.
Dogecoin’s Potential Rally: A Patient Game
According to Sherpa, this dramatic price surge won’t be an overnight miracle. Investors might have to bide their time, potentially sacrificing the chance to dive into other lucrative investments during the wait.
Sherpa also pointed out that the popularity spotlight might shift to other meme coins such as Shiba Inu (SHIB) and Pepe (PEPE), further complicating DOGE’s ascent.
Breaching Resistance: The EMA Indication
Sherpa’s analysis showcases Dogecoin breaking through resistance markers, specifically the exponential moving averages (EMA). Currently, DOGE appears to be retesting the critical 89-day EMA, signal traders frequently associate with a possible trend reversal. If history repeats itself, DOGE could climb back to $0.50, a price level it last enjoyed in late 2021.
At the time of writing this article, Dogecoin is trading at $0.071, showcasing a positive change of nearly 3% within the last day. However, the meme-based cryptocurrency has an uphill climb.
It is navigating a bullish short-term trend channel but is approaching a formidable long-term resistance mark in the upper $0.07 range. The next immediate resistance level is $0.077.
Elon Musk’s Midas Touch
Another key factor in Dogecoin’s market movements is Elon Musk. DOGE experienced a nearly 4% price surge in mere minutes following a tweet from the Tesla and SpaceX CEO. Musk’s social media mentions have historically impacted DOGE’s price trajectory, suggesting that his influence remains a factor in the coin’s future performance.
Despite the bullish short-term outlook, Dogecoin’s long-term price prediction still leans towards bearish unless it can decisively break past the looming resistance zone. Should it fail to do so, the token might retest its yearly lows. However, if Sherpa’s analysis holds true and patience pays off for the holders, Dogecoin might just surprise the crypto community with a $0.50 price tag.
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Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.