Dogecoin Price Prediction as DOGE Drops 8% – Time to Buy the Dip?
Dogecoin price is exchanging hands at $0.1198 after losing 8% of its value over the last 24 hours. This $16 billion meme coin grew by over 100% in the past week amid an Elon Musk-triggered rally.
Dogecoin proponents backed the rally in droves, compelling bullish forecasts to $1.
However, DOGE started giving up some of its gains before the $0.15 level. It now appears to be sitting on top of robust support, slightly above $0.1100.
Overhead pressure will increase if holders choose to lock in the gains, but if this support holds, the Dogecoin price could quickly resume its uptrend.
Is Dogecoin the Best Cryptocurrency to Short
The entire cryptocurrency market is turning its attention to the upcoming Federal Reserve meeting, scheduled to take place on November 2. Market participants expect the regulator to continue tightening its grip on interest rates as it combats inflation.
A 0.75% rate hike or will likely mount more pressure on riskier asset classes like cryptocurrencies.
As for the Dogecoin price, the risk could even be higher considering its massive rally from $0.0680, as discussed in this article on Sunday. Looking at the MVRV (Market Value Realized Value), an on-chain metric by Santiment, a trend reversal is already underway.
The MVRV tracks the profit or loss of DOGE holders by comparing the price at which the tokens last moved with their current market value. Any reading above one means the asset is considered overvalued, which introduces the risk of a retracement as investors sell to book profits. Therefore, with the MVRV hitting 36.69% – a trend reversal is a matter of when and not if.
Investor sentiment toward the most valuable meme coin in the market plunged significantly during the weekend as Elon Musk’s takeover news settled. From the chart below, positive sentiment toward DOGE sits at 145 after falling from 824, recorded on October 29.
Similarly, all the mentions of Dogecoin (negative and positive) now hold at 222 from 1,300 within the same period.
Suppose Dogecoin continues to attract few positive mentions and a reduced total social volume. In that case, bulls will most likely run out of the momentum to support the northbound move, paving the way for a significant trend correction.
Dogecoin’s whale transaction count is now a small fraction of its peak last week of 215. Only 20 transactions worth more than $100,000 occurred over the last 24 hours.
Remember that Dogecoin’s rally to $0.15 largely depended on many of these large transactions.
Massive whale transactions continued throughout the weekend, allowing DOGE to hold support at $0.1200. N
ow the ball is in the hands of the whales because if they keep selling, pressure will eliminate all chances of the foreshadowed move to $1.0000.
Dogecoin Price Prediction
The TD Sequential Indicator has presented a sell signal in the form of a green nine candlestick. This signal signifies incoming selling pressure while bulls retreat into the background.
Traders looking for short positions must confirm that the high of the sixth and seventh candles in the count is exceeded by that of the eighth or ninth bars. A daily close below support at $0.1200 will confirm the trend reversal, with possible profit targets at $0.10 and $0.085.
As the trading volume flips negative, there will be no option but to let the price revisit downstream levels. The OBV (On Balance Volume) indicator shows that DOGE’s trading is still high, but there is a possibility that sellers will take over.
However, DOGE closed above $0.12 on October 31, and moving into November 1 the coin turned bullish once more, seeing a significant increase in volume and a move all the way to $0.15 again.
The coin has again met extreme resistance at that level and is now trading at $0.144 – with the four-hour Relative Strength Index (RSI) showing at 74, marking it as the most ‘overbought’ coin in the top 200.
If sentiment remains bullish DOGE could move to $0.20 in the short term but, as mentioned above, the key support line for a bearish move is below $0.12.
Longer term, many investors remain convinced that Elon Musk will incorporate DOGE on Twitter. Until there is confirmation of that – one way or the other – the price could continue to rise.
3 Better Altcoins to Invest In
For traders eager for big rises, there are more promising alternatives than DOGE, especially with regard to the longer term. It is always important to have a diversified portfolio in order to not have all eggs in one basket.
All three of these altcoins have stronger fundamentals than DOGE, with each having much brighter futures ahead of them. At the same time, the fact that they’re holding their respective presales right now means that early investors have the opportunity to lock in some above-average returns since when they receive their first exchange listings, each coin is likely to surge.
It’s difficult to predict just how well these projects will perform but a recent example, Tamadoge (TAMA) saw a return of 1800% relative to its presale price, after it was listed on some exchanges. These coins have the fundamentals to keep this positive momentum going.
Dash 2 Trade (D2T)
Dash 2 Trade, is an Ethereum-based intelligence platform designed to be useful to investors and day traders. Think of it as a Bloomberg Terminal for cryptocurrencies.
Dash 2 Trade provides traders with trading signals and enables them to create and test trading strategies in real-time using signals from the latest news and on-chain data.
D2T is the token powering this world-class crypto analytics platform, and the team has raised more than $3.5 million in the presale so far.
The current price for D2T is $0.05 and this will increase to 0.0513 in the next presale stage.
IMPT comes second on the list. It is also an Ethereum-based token rewards users for shopping with eco-friendly retailers.
Users can easily obtain carbon credits through regular buying activities, eliminating the need to go through a difficult process.
Just four weeks after its launch, the IMPT token presale has brought in more than $11.6 million, catching the attention of crypto experts.
Given its fundamentals, it is likely that IMPT will rise dramatically from its presale price once listing on exchanges starts.
Third on the list is Calvaria, a play-to-earn (P2E) gaming platform where players are rewarded for battling with NFT-based collectible cards. Calvaria flaunts its uniqueness across the P2E and NFT sectors by enabling users to play without the need to hold any crypto.
Calvaria is currently in presale, having raised over 914,000 USDT. Stage 3 of the presale is 67% complete, with 50 RIA tokens selling for 1 USDT. This price will keep rising in the next stages of the sale.