Dogecoin (DOGE) Price Prediction: February Surge Hinges on $0.12 Support Level

As one of the most well-known cryptocurrencies, Dogecoin continues to pull in retail interest due to its very high volatility.

Price action over the last few months has created a clear downtrend, where there have been multiple attempts to break above the resistance level of $0.13–$0.14.

Although there are substantial long-term narratives supporting the case for adoption, DOGE’s short-term price action continues to be driven mostly by technical structure and market momentum. At press time, the coin is trading at $0.1164 with a decline of 6.87% over the past 24 hours.

DOGE Struggles Below Resistance as Bearish Indicators Persist

Looking at the chart on TradingView in daily candles, the coin is currently trading at approximately $0.118 and is presently trading just below the important support level of $0.12, which has turned into a near-term pivot level.

Momentum indicators indicate that caution should be exercised with respect to the coin. The MACD continues to remain below the zero line, and the MACD line has recently crossed under the signal line; therefore, bearish pressure remains evident. There has also been a reduction in trading volume.

Hence, it seems that buyers are severely lacking conviction. Unless it breaks decisively above $0.12 and establishes acceptance above that point, any upside potential for February may be limited.

Also Read: Dogecoin Holds Key Support and Eyes $0.65 as Breakout Momentum Builds

Tweet Sparks Optimism Around Dogecoin’s Role in Home Loans

Additionally, there has been a viral tweet by the user named dogegod, regarding Dogecoin possibly being used in home loan assessments because of a U.S. housing directive examining the use of crypto as a recognized asset.

This indicates that when assessing an individual’s finances to determine their ability to obtain a home loan, they’ll be evaluating the value of their crypto assets (i.e., Dogecoin).

Although there is no guarantee that any crypto will be utilized as collateral in obtaining a loan and ultimately qualifying for a mortgage, this development does indicate that the institutional investment community is becoming more aware of the potential of cryptocurrencies. Therefore, it creates long-term positive momentum for Dogecoin

Forecast Points to Modest Recovery

Dogecoin has an expected gradual rise in value, with estimates for February from coinCodex ranging between $11.33 (average) to $12.05 (maximum) and an increase of around 8% over the previous month.

Instead of a strong rally, this outlook supports a period of stabilization (so long as current price and movement remain in line with the technical setup), until there is momentum to continue higher.

In order for the coin’s price to build support in February, it must hold above the $0.12 level. Technical indicators suggest caution about this, while positive sentiment from government policy-based developments and optimistic price forecasts will provide support (up to a point) for a downside limit on the price action during February.

The continuing validity of the previous month will help keep a rally going after it breaks through early in the month of February.

Also Read: 21Shares ETP Launch Could Drive Dogecoin Price Toward the $0.64 Level