Crypto markets are once again experiencing significant volatility, with Bitcoin recently trading below $80,000. This volatility also affected memecoins like Dogecoin, which saw downward momentum last week. However, the future outlook for the Dogecoin price remains positive.
On Sunday, March 30, Doge dipped 0.56%, trading at $0.1688, declining from weekly highs at $0.21. Still, the token remains above the key horizontal support levels, especially at $0.14. This indicates a potential for a rebound in the short term.
If Dogecoin stays above the $0.14 level, it could bounce to the next support at $0.205, at which point further gains are possible. The key level after that is the resistance at $0.3, which is also attainable in a shorter timeframe.
When taking a more long-term view, charts indicate a potential for even bigger gains. Notably, the weekly Relative Strength Index (RSI) has once again reached oversold levels for the third time in two years. In the past two instances, this indicator preceded significant price increases.
Notably, the long-term trendline suggests that if this case holds up, the Dogecoin price has the potential to reach $1 this year. This would also be the next all-time high for Dogecoin, surpassing the $0.7376 level from May 2021. Still, some traders believe this is just the start of DOGE’s journey.
Can Dogecoin Price Reach $8?
Traders have noted that Doge is trading consistently with a circular pattern on the exponential chart. Notably, the recent bottoms in October last year and late March show that the bottom part of the circle holds as a support. If the pattern holds, it puts Dogecoin on a trajectory toward a new ATH this year and even beyond $1.
If it holds, the arc forming again would put Dogecoin at $8 this year, meaning a 5000% increase from its current price. However, it is important to know that this scenario, even if it conforms with historical data, is rather unlikely.
At $8, with the current supply of 148.64 billion tokens, Dogecoin (DOGE) would have a market cap of $1.189 trillion. This would make Dogecoin the second-biggest crypto asset behind Bitcoin’s market cap of $1.63 trillion. Given these projections, it remains important for traders to assess the feasibility and risks associated with such significant growth.
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