Dogecoin’s Surge Faces Obstacles: Future Outlook for DOGE

Dogecoin had been riding high with a significant increase in price, but it seems like there may be a bump in the road ahead. While the fear and greed index are hinting at a possible sell-off, Dogecoin’s daily chart took a turn to the red after a remarkable weekly surge.

Investors were left a bit disappointed as Dogecoin’s price dropped in the last 24 hours after a remarkable rally. However, the memecoin is still eyeing its all-time high. Will Dogecoin break its own record, or will it fall short of investors’ expectations?

According to CoinMarketCap, Dogecoin saw a price spike of over 20% last week before experiencing a 5% correction in the last 24 hours. Currently trading at $0.4373, Dogecoin ranks as the seventh-largest cryptocurrency.

MilkyBull Crypto, a well-known crypto analyst, shared a tweet suggesting that Dogecoin is inching closer to its all-time high. A user asked about the possibility of Dogecoin reaching $5, to which MilkyBull Crypto responded that while it’s unlikely, anything can happen in the volatile world of cryptocurrencies.

Despite a decline in trading volume, there is some positive news as it could indicate a potential upward trend. On the flip side, there is a rising bearish sentiment around Dogecoin, as shown by a decrease in Weighted Sentiment. However, the decline in Open Interest along with its price suggests a possible trend reversal soon. This is further supported by an increase in the Funding Rate, indicating active buying of Dogecoin at a lower price by derivatives investors.

Looking at Dogecoin’s daily chart, it appears to be moving within an up-channel and testing the pattern’s resistance. The MA Cross indicator points to a bullish trend, hinting at a potential breakout that could lead to Dogecoin testing its all-time high.

Even if Dogecoin surpasses its all-time high, investors should be prepared for a possible correction afterward. In case of a price discovery, Dogecoin could drop back to $0.367 after reaching a new all-time high.

One factor to consider is the fear and greed index, which has entered the “extreme greed” phase. This could indicate a higher likelihood of a price correction in the near future.

Overall, while Dogecoin’s journey to its all-time high seems promising, investors should always be prepared for the volatile nature of the crypto market.