- Crypto analyst Master Kenobi predicts DOGE will hit a new high of $6.9 based on historical data.
- However, the immediate prospects for DOGE remain bleak.
A review of Dogecoin [DOGE] Recent activity shows that both the market cap and price have fallen 3.85% in the past day, making it look less attractive.
Nevertheless, this downturn could be a small and necessary setback that paves the way for the significant long-term rally that crypto analyst Master Kenobi recently predicted.
$6.9 for DOGE is considered unavoidable
Dogecoin was at a critical point, with expectations of a significant rise in the coming weeks, says crypto analyst Master Kenobi.
In his words:
“This is probably the last time we’ll see ZERO after the decimal point.”
Kenobi backs up his view with a chart showing how DOGE has historically soared after each Bitcoin halving, in line with trading in a trendline support zone.
DOGE was trading around this key support level at the time of writing, which is expected to trigger a sharp upward move.
Source:
According to his analysis, there are three main price targets: initially at $0.89, followed by $2.2, and finally hitting a new all-time high at $6.9.
Despite these optimistic projections, AMBCrypto’s analysis suggests a potential near-term decline for DOGE.
Short-term outlook: DOGE may decline further
According to insights from AMBCrypto, DOGE will likely continue to see zeros after the decimal point in the short term.
The Super Trend indicator on the daily time frame indicates that DOGE is expected to decline further in the near term. This trading tool, which uses price and volatility to identify market trends, is currently signaling a sell because the price is below its limit.
The chart suggests that the current position of the Super Trend indicator above the DOGE price points to a possible further decline.
Using a Fibonacci retracement line to pinpoint potential levels of DOGE price decline, two support levels are of interest: the first at $0.09542, and if that fails, a drop to $0.08050 is expected.
Source: trading view
The Relative Strength Index (RSI), with a current reading of 39.66, reinforces this bearish outlook. The RSI indicates that buyer interest is declining as seller activity increases, suggesting that the price of DOGE may continue to decline.
Source: trading view
This momentum indicator typically identifies overbought conditions above 70 and oversold conditions below 30, further supporting the prediction of downward price movement for DOGE.
Interest in retail is declining
Recent data from DOGE shows a significant decrease in active addresses. From 55,295 on August 16, the number has fallen by more than 15,000, indicating declining interest among private investors.
This decrease in the number of active addresses often indicates negative sentiment, which may drive prices down.
Source: Santiment
Coinglass liquidation data also indicates a downward trend for DOGE. More than $1.36 million in retail positions have been liquidated in the last 24 hours, with long traders accounting for $1.19 million of this total, indicating a growing tendency to sell.
Source: Coinglass
Read Dogecoins [DOGE] Price forecast 2024-2025
This pattern was also observed the day before, when $612.44k in long positions was forced to close.
Should this trend continue, DOGE could continue to decline and possibly reach the aforementioned support levels of $0.09542 or $0.08050 in the near term.
