It was on May 12 when the Dogecoin (DOGE) literally shocked the investment community. The entire DOGE community received a shocker when its price reached a very low price, hitting the technical support confluence. The particular phenomenon was witnessed by the entire DOGE community on May 12.
Dogecoin is expected to Bounce Back
While the majority of the investment community is concerned about the recent drop in DOGE’s price, the analysts see this as a wake-up call for DOGE.
The analysts predict that following the dip, Dogecoin has started showing strong signs of a rebound. Many prospects coming in for Dogecoin are reportedly backing up the idea of the meme coin experiencing a strong rebound.
Just this week, DOGE’s price has dipped by 45%, which also translates to DOGE experiencing a 90% dip from its all-time high. A year back, DOGE reached its all-time high of $0.76 on May 8, 2021.
Surprisingly, as DOGE price dipped 90% from the AHT, which triggered strong sentiments. Therefore, DOGE’s price has gone through a rebound, which took place on May 12. Following the rebound, DOGE has risen to $0.078 growing by 10%.
The upward retracement for DOGE was recorded close to the two support levels’ meeting point. The first support level was the horizontal line that was formed following a 335% rally DOGE’s price had undergone last year. The second support level was the downward trend line that has been formed following DOGE’s multi-month dip.
Dogecoin’s Price Surge
In the year 2021, DOGE experienced the same pattern where its downward line kept coinciding with the uptrend line. It is being proposed if DOGE experiences the same trend, it may start growing upward. DOGE may come near to $0.10 per DOGE, witnessing a 25% surge from the low price on May 12.
The daily RSI of Dogecoin is also indicating the buying trend, which has been caused by DOGE’s oversold threshold.
DOGE price also has the potential to move in the opposite direction. Analysts fear DOGE may dip to its strong support level from April 2021. The particular level was recorded at $0.04 and provided huge support to DOGE back in 2021. However, DOGE will be pulled to this level only if it plunges by 40%.
Elon Musk May Help DOGE Grow
In recent months, all cryptocurrencies including DOGE have witnessed a dip in their demand due to the US Federal Reserve. The regulatory authority recently decided to deal with the cryptocurrency sector using aggressive monetary policies. The rise in inflation and interest rates are also becoming a hiccup for Dogecoin.
However, Elon Musk has the power to save DOGE. Musk is known for being a great influencer and it was because of his input DOGE became a world-renowned asset. His recent acquisition of Twitter may introduce several new integrations into Twitter, and they may also support DOGE.