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Dog-themed cryptocurrency Dogecoin (DOGE) is down 14% so far in March, triggering expectations about its potential trajectory in April. Historical data provides insights into how DOGE performed in previous April, offering clues to what traders might expect.
Examining previous April trends since 2021 using TradingView data yields varied results. In April 2021, Dogecoin experienced a parabolic surge of 531%, marking a historic rally. The reverse occurred in April 2022, with Dogecoin closing the month with a 7.75% drop. Dogecoin ended April 2023 with a small 3.29% gain, suggesting some seasonal recovery. In April 2024, after an 87% increase in March, DOGE plunged over 40% due to a price correction.
Given past trends, three scenarios are possible: Dogecoin may experience a decline, a small rebound, or massive gains depending on broader market conditions and investor sentiment. If historical patterns hold, any dip in April could be less severe than last year's correction, given there is no preceding parabolic spike like in March 2024.
Tomiwabold OlajideThat said, it should be borne in mind that historical data do not predict future outcomes; hence, other market indicators will be closely watched to decide Dogecoin's next price move.
Dogecoin price action
At the time of writing, Dogecoin was down 6.14% in the last 24 hours to $0.17 amid an ongoing market sell-off as investors considered a hotter-than-expected inflation report. The February PCE inflation report, published on Friday, showed a 2.5% year-on-year increase in the price index, with core inflation at 2.8%, somewhat higher than projected.
Godfrey BenjaminDogecoin is poised to mark its third day of drop since a high of $0.206 on March 26, if today ends in losses. If the price turns up from the current level and breaks above the 50-day SMA at $0.208, it may indicate that bulls are attempting to establish a higher low. This raises the chance of a break over the 50-day SMA, which may propel Dogecoin to $0.24 and then to $0.29.
Another possibility is that Dogecoin may fluctuate between $0.14 and $0.20 for some time. Dogecoin's price behavior around the $0.16 support will be watched, as further declines might cause Dogecoin to test support near $0.14.
Vladislav Sopov
Dan Burgin