Dogecoin price enters correction: could DOGE hit $1 soon?
Dogecoin price has moved into a technical correction after soaring to a multi-month high on Nov. 6 following Donald Trump’s election.
Dogecoin (DOGE), the biggest meme coin, retreated to $0.1930 on Nov. 7, down by 12% from its highest level this year. A drop of between 10% and 19% from a local top is known as a local correction.
Still, DOGE has become one of the best-performing cryptocurrencies in the past few days after soaring by 140% from its lowest in August.
Most of these gains happened as crypto traders remained optimistic about a Trump victory and its implication for Elon Musk, its biggest backer. Now that Trump has won, Musk is expected to take a role in the Department of Government Efficiency. He will also likely be a key crypto promoter in the administration.
Dogecoin has some strong fundamentals and technicals that could push it higher in the long term. Data shows that DOGE’s futures open interest has jumped to $1.62 billion, its highest level since April this year.
Additionally, the coin’s volume in the spot market has remained at an elevated level. It jumped to $6.4 billion on Thursday, the highest level in months, a sign that investors are buying it.
Will Dogecoin price hit $1?
Most importantly, Dogecoin has strong fundamentals, which could help it jump to $1, a 426% from the current level.
On the daily chart, we see that the DOGE price formed a falling wedge pattern between April and September this year. This pattern is made up of two trendlines, which connects the higher lows and lower lows. A bullish breakout happens when the two lines near their confluence levels.
DOGE price has formed a golden cross pattern as the 200 and 50-day moving averages made a bullish crossover on Oct. 25. This pattern is usually followed by more gains.
It is now in the process of forming a cup and handle pattern, another continuation sign. Therefore, more gains will become valid if DOGE rises above the upper side of the cup at $0.2285.
On the flip side, a drop below $01425, its lowest swing on Nov. 3 will invalidate the bullish view.
