Dogecoin (DOGE), the top memecoin, has reached its highest price in 34 days, sparking renewed interest among investors. On July 20, DOGE experienced a substantial breakout, which propelled its price upward. Despite the encouraging movement, some analysts remain cautious about the longevity of this trend.
What Led to Dogecoin’s Surge?
Crypto analyst Shelby highlighted in a July 20th post that DOGE’s breakout signals an aggressive upward trend. Shelby recommended paying attention to other memecoins like Floki (FLOKI) and Shiba Inu (SHIB) as their prices often follow DOGE’s upward movement. Similarly, analysts Cheds and CryptoBoss confirmed DOGE’s breakout and noted its current trading price at $0.1336, marking an 18.82% increase over the past week.
Is a Pullback Imminent?
Analyst Magnate cautioned against falling for FOMO, suggesting a potential price pullback. Magnate predicts the price could drop to $0.1194, which would liquidate approximately $47.23 million in long positions. This cautionary note adds a layer of skepticism to the otherwise bullish sentiment.
Key Investor Takeaways
- Monitor other memecoins like FLOKI and SHIB for potential price increases.
- Be cautious of FOMO and consider the likelihood of a price pullback.
- Track market sentiment indicators like the Crypto Fear and Greed Index to gauge investor behavior.
- Observe Open Interest levels as a sign of increasing or decreasing investor interest.
The recent surge in DOGE’s price has fueled speculation that the memecoin could revisit its all-time high of $0.73, achieved post the third Bitcoin block reward halving in May 2021. Analysts suggest this pattern could repeat, potentially driving DOGE to a new peak in April 2025.
In a related development, Dogecoin’s Open Interest (OI) has hit its highest level for July, climbing 19% in the past four days to $647.19 million, as per CoinGlass data. This surge in OI corresponds with an improved market sentiment, as indicated by the Crypto Fear and Greed Index, now at 74 (“Greed”) compared to last week’s 33 (“Extreme Fear”).
While the current price spike is promising, analysts advise a cautious approach, considering potential pullbacks and the market’s volatile nature.