The Dogecoin price is rebounding after crashing by more than 50% during the weekend. DOGE, the so-called meme currency, is trading at $0.3330, which is about 45% above where it was during the weekend. It is valued at more than $42 billion and is the sixth-biggest digital currency in the world.
What happened: Dogecoin has done extremely well recently, helped by its vibrant community and the recent tweets by Elon Musk. The currency has jumped by more than 4,500% from its lowest level on January 27. This makes it one of the top-performing digital currencies in the world. This performance has been because of the overall performance of the entire crypto ecosystem.
Furthermore, all digital currencies like Bitcoin and Ethereum have all rallied this year. Also, some companies like Bots and EasyDN have announced that they will start accepting the currency. However, this user adoption has a long way to go because of its substantial volatility. So, what next for Dogecoin prices?
DOGE price prediction
The four-hour chart shows that the Dogecoin price has formed an important bullish pattern. As shown in red, the currency has formed what is known as a bullish pennant pattern that is usually a sign of bullish continuation. It is also being supported by the 15-day and 25-day exponential moving averages (EMA). It has also struggled moving below the 50% Fibonacci retracement level.
Therefore, in my view, since the easy money policy is expected to continue, I suspect that the currency will continue rising. This prediction will be confirmed if it moves above the all-time high of $0.4412. On the flip side, a drop below $0.2288 will invalidate this trend.