Dogecoin is a popular meme coin backed by Tesla CEO Elon Musk, who regarded it as a ‘People’s Coin.’ At the time of writing, DOGE was up more than 5% in 24 hours, and the candlesticks are forming in the upper Bollinger Bands from the second week of January 2023, which suggests a short-term bullishness in the DOGE price. However, Bollinger Bands lack volatility, MACD is neutral, and RSI is around 60, which suggests a consolidation in the next few weeks.
Based on the DOGE price action, we can find the resistance around $0.105, which is the primary target for the short term. After that, it will consolidate for the next few months if it does not break the resistance. Moreover, due to inflation, recession, and the US FED rate hike, the crypto markets will continue the bear phase even this year. The year can be suitable for traders, who can capitalize on the volatile momentum.
Though we do not suggest investing in meme coins for the long term, Dogecoin’s weekly chart is very interesting. It has formed five weekly green candles, among which the last three candles are indecisive Doji. It suggests selling pressure from the investors.
Technical indicators such as RSI and MACD are bullish. Candlesticks are forming in the upper Bollinger Bands. All these suggest an up move, however, read our Dogecoin prediction before you invest in DOGE for the long term as meme coins are a risky long-term asset.
2023 will be a volatile year, and meme coins are always volatile, so you have to book profit at the right time to avoid volatility. Pick the right trend for short-term capital gain. Dogecoin must be on your watch list because it will provide a huge opportunity to get a good return even this year. Experts suggest a consolidation for DOGE until other blue-chip cryptocurrencies start to rally.
Before long-term investing in Dogecoin, please remember that DOGE does not have a fixed market supply, and the price will not rise because of the demand-supply in the market. Besides that, Dogecoin does not have many real-world use cases.
