Dogecoin (DOGE) Price Analysis for January 29

Price Predictions
Fri, 01/29/2021 - 14:54
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Denys Serhiichuk
Is the rise of Dogecoin (DOGE) a pump or a prerequisite for long-term growth?
Dogecoin (DOGE) Price Analysis for January 29
Cover image via www.tradingview.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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The market keeps rocketing after a short-term correction. Against the growing altcoins, Dogecoin (DOGE) has also joined them, as its price has risen by almost 400% over the last day.

Top 10 coins by CoinMarketCap
Top 10 coins by CoinMarketCap

Against the sharp rise of Bitcoin (BTC), its market share has also increased and is now 64.8%.

BTC’s market share
BTC’s market share

The relevant data for Dogecoin today:

  • Name: Dogecoin

  • Ticker: DOGE

  • Market Cap: $6,795,962,339

  • Price: $0.05077

  • Volume (24h): $34,712,806,084

  • Change (24h): 340.93%`

The data is relevant at press time.

DOGE/USD: Will the dump be as fast as the pump?

Dogecoin (DOGE) is the biggest gainer over the last few days. While some coins have risen by a few percentage points, DOGE has rocketed by almost 1,000% over the last week.

DOGE/USD chart by TradingView
DOGE/USD chart by TradingView

On the hourly chart, Dogecoin (DOGE) is looking bearish, forming the Head and Shoulders pattern. If it falls below $0.05 and fixes there, there are high chances of seeing a retest of the MA 50 that refers to the area around $0.025.

DOGE/USD chart by TradingView
DOGE/USD chart by TradingView

On the bigger time frame, the situation is also bearish as Dogecoin (DOGE) is located on the verge of the overbought zone according to the RSI indicator. In this case, one may expect a drop to the nearest support at $0.028 to gain power for a future rise.

DOGE/USD chart by TradingView
DOGE/USD chart by TradingView

From the long-term point of view, there is no liquidity at the current levels to keep the ongoing growth.

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That is why one may expect a decline to the level of $0.014 for a retest. However, such a move would be part of a correction after sharp growth.

Dogecoin is trading at $0.052 at press time.

 
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About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and makes predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.