Dogecoin Technical Analysis: Can "Shiba Dog" Continue to Fly High?

[CryptoHolic]

Dogecoin, the meme-inspired cryptocurrency, attracted investors' attention because of its explosion in value in 2021. However, after a period of strong growth, Dogecoin is currently going through a period of adjustment, causing many investors to worry about the future potential of this currency.

This article will delve into Dogecoin's technical analysis based on indicators and market data, helping you make an objective assessment of Dogecoin's price trend and development potential in the near future.

1. Dogecoin Price Chart:

The Dogecoin price chart shows the strong growth trend of this coin from the beginning of 2021 to May 2021, reaching the highest price of $0.76. However, after peaking, Dogecoin began to correct and is currently trading around $0.06.

2. MACD Indicator:

The MACD indicator shows that Dogecoin is in a downtrend, the MACD line crosses below the signal line and creates a downward diagonal.

3. RSI Indicator:

The RSI shows that Dogecoin is in the oversold zone (below 30), suggesting that the coin may be overbought and is likely to recover.

4. Trading Volume:

Dogecoin trading volume has been trending down recently, showing that investor interest in the coin is waning.

5. On-chain Data Analysis:

Hash rate: Dogecoin's hash rate is still maintaining a high level, showing that the network is still operating stably and safely.
Number of active addresses: Dogecoin's number of active addresses is trending downward, indicating a decline in the number of active users.