The Dogecoin price has rebounded this week. DOGE is trading at $0.0735, which is 80% above its lowest level on February 23rd. Its total market cap has risen to more than $9.6 billion, making it the 16th largest digital currency in the world.
The background: Dogecoin is a popular digital currency that helps people send money internationally without paying a fee. It also ensures the anonymity of the transactions, unlike Bitcoin that can easily be tracked. Also, the transactions are secure and relatively faster.
The currency rose in popularity early this year as billionaires like Elon Musk and celebrities like Snoop Dogg started promoting it. It was also revealed that most of the Dogecoins were held by a small group of people. Further, the number of sellers accepting the currency. Still, it is unclear about the volume of transactions that are happening in the currency. Also, a closer look at Google Search trends shows that the volume of searches for the currency has declined.
Still, there is an active community of Dogecoin enthusiasts that have helped hold it steady. Indeed, in the past few weeks, the currency has struggled to move below $0.0413 even in a period when the Bitcoin price dropped to $50,000.
Dogecoin price prediction
In my last Dogecoin price forecast, I wrote that the currency’s recent low volatility was a calm before the storm. I also wrote that the price could soon break out in either direction. It seems like bulls are having the final say as shown in the daily chart below. The price has rallied and is just 22% below the all-time high of $0.0878. It has also moved above the 25-day and 15-day exponential moving averages (EMA). It also seems to be forming a cup and handle pattern.
This is usually a continuation pattern. Therefore, in my view, while the fundamentals of DOGE are weak, I suspect that the price will soon rally as bulls target the all-time high because of fear of missing out (FOMO). However, a drop below $0.06 will invalidate this trend.