Dogecoin Price Forecast: DOGE hints at 50% rally as sentiment improves in first-ever Doge Day

Kabosu, the Shiba Inu dog who inspired the “doge” meme and the subsequent creation of the meme coin Dogecoin (DOGE), celebrates its 18th birthday on Thursday, an event which is named as the first-ever International Doge Day. Improving sentiment towards the meme coin and technical indicators suggest that DOGE price could increase up to 50% in the short to medium term.

Also read: Dogecoin Price Prediction: DOGE edges closer to 40% breakout rally

Dogecoin celebrates DOGE day

The Shiba Inu dog Kabosu’s birthday, popularly known as Doge day, marks a key milestone for the community of Dogecoin holders. It is the first international Doge Day and the Doge DAO is hosting an event in Japan in honor of Kabosu.

News and bullish developments in the ecosystem typically act as a catalyst for the asset’s price. Since meme coin price trends are largely influenced by the sentiment among holders, DOGE day is one such event that could fuel a bullish outlook for the asset.

Based on data from on-chain intelligence tracker Santiment, the weighted sentiment among DOGE holders has turned less negative between October 29 and November 1, climbing from -0.8 to -0.25.

As seen in the chart below, DOGE price is positively correlated with the weighted sentiment among the token’s holders. Typically, as weighted sentiment begins climbing from the negative to positive territory, price rallies alongside. This trend has been observed throughout October.

Weighted sentiment for Dogecoin against price 

DOGE price could rally 50%

Dogecoin price has breached a multi-month downtrend last week, confirming the potential for a trend reversal.. After three failed attempts, the Relative Strength Index (RSI) has finally swept above the 50 mean level, adding credence to the bullish outlook.

Assuming the bullish momentum continues to rise, investors can expect Dogecoin price to revisit two key hurdles at  $0.1065 and $0.1597. These two levels mark Dogecoin’s local top in November 2022 and May 2023. DOGE price needs to break past $0.0814 to climb towards its targets. This is identified as the breakout level for the asset.

DOGE/USDT one-week price chart on Binance

In the event that DOGE price fails to breakout, the bullish thesis is likely invalidated. The asset is then expected to resume its downward trend and the downside breakout level, $0.0495 is likely to act as support for the meme coin.