Dogecoin: 55% on 4/20? What’s next for DOGE on this meme day

Dogecoin’s price has been trending sideways for quite some time. However, tomorrow holds a special place for not just DOGE holders, but the entire crypto space. Cryptocurrency investors and Twitter are well-known for memes. With Dogecoin being the original memecoin, there is a good chance retail investors could trigger a buying spree, propelling DOGE higher.

Moreover, the CEO of Tesla and SpaceX, Elon Musk, has a soft spot for dog-themed cryptos, specifically Dogecoin. So, a tweet from the founder could send DOGE flying. Hence, investors need to be prepared for these outcomes.

Dogecoin’s price to retrace its steps back higher

DOGE’s price has dropped by roughly 85% from its all-time high at $0.744. However, the downtrend from 29 September 2021 to 23 March 2022 set up a falling wedge pattern. For DOGE, this setup contains three distinctive lower highs and lower lows that are connected using trendlines.

This is the most popular technical formation and forecasts a 34% upswing, obtained by measuring the distance between the first swing high and swing low and adding it to the breakout point. Interestingly, Dogecoin’s price shattered through the upper trendline on 24 March at roughly $0.130.

Therefore, adding the 34% move revealed the target at $0.178.

Although DOGE has tried maintaining its momentum after the breakout, it failed. As a result, DOGE has corrected by 25%, trading at $0.14 at press time. The consolidation under the $0.14 hurdle is likely to result in a bullish spike, one that pushes the meme coin to $0.161. Clearing this hurdle could trigger another extension of the uptrend to the $0.178 barrier – A 28% ascent.

In a highly bullish case, DOGE could tag the $0.216 ceiling after 55% gains.

Source: DOGE/USDT on TradingView

Lending credence to the bullish outlook for Dogecoin’s price is the 365-day Market Value to Realized Value (MVRV) model. As mentioned in previous articles, this indicator is used to assess the average profit/loss of investors who purchased DOGE tokens over the past year.

A value below -10% indicates that short-term holders are selling at a loss and is typically where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as an “opportunity zone,” since the risk of a sell-off is low.

Source: Santiment

This indicator has been hovering below the zero line since October 2021 and at press time, was at -38.6%. This value reveals the investors are “out of the money” and hence a sell-off is less likely. For, long-term investors this is a good opportunity to scoop up the DOGE tokens at a discount