Dogecoin price enters correction: could DOGE hit $1 soon？

Dogecoin price has moved into a technical correction after soaring to a multi-month high on Nov. 6 following Donald Trumps election.

Dogecoin (DOGE), the biggest meme coin, retreated to $0.1930 on Nov. 7, down by 12% from its highest level this year. A drop of between 10% and 19% from a local top is known as a local correction.

Still, DOGE has become one of the best-performing cryptocurrencies in the past few days after soaring by 140% from its lowest in August.

Most of these gains happened as crypto traders remained optimistic about a Trump victory and its implication for Elon Musk, its biggest backer. Now that Trump has won, Musk is expected to take a role in the Department of Government Efficiency. He will also likely be a key crypto promoter in the administration.

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Dogecoin has some strong fundamentals and technicals that could push it higher in the long term. Data shows that DOGEs futures open interest has jumped to $1.62 billion, its highest level since April this year.

Dogecoin futures open interest | Source: CoinGlass

Additionally, the coins volume in the spot market has remained at an elevated level. It jumped to $6.4 billion on Thursday, the highest level in months, a sign that investors are buying it.

Will Dogecoin price hit $1？

DOGE chart by crypto.com

Most importantly, Dogecoin has strong fundamentals, which could help it jump to $1, a 426% from the current level.

On the daily chart, we see that the DOGE price formed a falling wedge pattern between April and September this year. This pattern is made up of two trendlines, which connects the higher lows and lower lows. A bullish breakout happens when the two lines near their confluence levels.

DOGE price has formed a golden cross pattern as the 200 and 50-day moving averages made a bullish crossover on Oct. 25. This pattern is usually followed by more gains.

It is now in the process of forming a cup and handle pattern, another continuation sign. Therefore, more gains will become valid if DOGE rises above the upper side of the cup at $0.2285.

On the flip side, a drop below $01425, its lowest swing on Nov. 3 will invalidate the bullish view.

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