Dogecoin (DOGE) Price Prediction 2022: Will DOGE Hit $1 This Year?

Dogecoin [DOGE] formed a falling wedge pattern and was on the verge of a bullish breakout from it. Another analysis perspective showed that the breakout has already occurred.

Dogecoin [DOGE] has been in a falling wedge pattern, and a breakout from it could lead to a bullish move. Another analysis perspective suggests that the breakout has already occurred.

However, the price has stalled over the past week and wiped out some of the earlier gains. Despite that, it maintained the bullish market structure on the 1-day chart. But the bulls had challenges ahead.

The first is the volume, which has been very low throughout July. Even when the prices started climbing higher halfway through the month, bullish conviction was lacking.

The OBV reflected this fact with a tepid bounce in July, and over the past few days has resumed its slump.

The $0.119-$0.123 zone is the biggest support nearby, and the $0.139-$0.143 is the largest resistance. A retest of the $0.12 support level appeared possible and might present a buying opportunity.

Dogecoin is still undervalued- should you buy it?

The mean dollar invested age continued to trend higher, indicating that investments were becoming more stagnant. Usually, a dip in the MDIA coincides with a strong uptrend, as we saw in late February.

The 90-day MVRV ratio showed DOGE was undervalued despite the recent bounce. This was encouraging as it reduced the likelihood of a wave of selling from profit-takers.

The 10M-1B coin holders (blue and orange) had accumulated DOGE in early July. Shortly thereafter, they began to unload their bags, indicating a lack of faith in the token.

Whale selling combined with a lack of trading volume meant that the chances of a strong rally were slim.

A Bitcoin [BTC] pullback can impact sentiment more in these conditions, especially since the BTC-DOGE correlation stood at +0.95.

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