This Thursday marks the first-ever International Doge Day as Kabosu, the Shiba Inu dog that gave rise to the “doge” meme and the subsequent invention of the meme coin Dogecoin (DOGE), celebrates its eighteenth birthday. Technical indicators and a growing attitude toward the meme coin point to a short- to medium-term price increase of up to 50% for DOGE.
Dogecoin celebrates DOGE day
For the community of Dogecoin holders, Kabosu’s birthday, also referred to as Doge Day, is a significant occasion. In honor of Kabosu, the Doge DAO is holding an event in Japan on this inaugural international Doge Day.
Usually, news and positive changes in the ecosystem serve as stimulants for the asset’s price. One such event that can support an optimistic view of the asset is DOGE Day, since mood among holders has a significant impact on coin price patterns.
Between October 29 and November 1, the weighted sentiment among holders of DOGE increased from -0.8 to -0.25, according to data from the on-chain intelligence tracker Santiment.
The price of DOGE and the weighted sentiment of token holders are positively associated, as can be seen in the figure below. Price typically rises in tandem with weighted sentiment as it moves from the negative to the positive. We have seen this pattern all of October.
The DOGE price could rally by 50%.
Last week, the price of Dogecoin broke through a multi-month downtrend, indicating the possibility of a trend reversal. The Relative Strength Index (RSI) has finally surged above the 50 mean level following three unsuccessful tries, supporting the bullish view.
If the positive trend keeps up, investors should anticipate that the price of Dogecoin will test two important resistance levels, $0.1065 and $0.1597. Dogecoin reached its local peak in November 2022 and May 2023 at these two levels. For the price of DOGE to rise toward its goals, it must surpass $0.0814. This is recognized as the asset’s breakout level.
The bullish argument is probably refuted if the price of DOGE is unable to break out. After that, it is anticipated that the asset will continue its downward trend, with the meme coin likely to find support at the bearish breakout level of $0.0495.