Dogecoin is about to test its all-time high, but there may be obstacles ahead.

• After a week of substantial gains, the daily chart of DOGE has turned red.
• The Fear and Greed Index suggests a potential sell-off.

After a week of substantial gains, the price of Dogecoin [DOGE] has declined in the past 24 hours, disappointing investors. Nevertheless, the memecoin still has the potential to test its all-time high.

Will DOGE set a new record, or will investors have to wait for more?

Will Dogecoin test its all-time high?

According to CoinMarketCap data, DOGE's price surged over 20% last week. In the past 24 hours, the uptrend has come to an end as the memecoin experienced a 5% pullback.

At the time of writing, the trading price of the memecoin is $0.4373, making it the seventh-largest cryptocurrency.

Meanwhile, renowned crypto analyst MilkyBull Crypto tweeted that DOGE is nearing its all-time high levels.

Interestingly, an X user commented on the post, asking about the likelihood of DOGE reaching $5. MilkyBull Crypto replied that it is unlikely, but the comment also stated that anything is possible.

DOGE's next move

Meanwhile, DOGE's trading volume has declined by 15% in tranches. This is good news, as a decrease in trading volume during a price decline typically signals a reversal of the bullish trend.

However, its weighted sentiment has declined, indicating a rise in bearish sentiment around Dogecoin.

Another optimistic indicator is the open interest, which has declined along with the price, suggesting that the trend is likely to reverse soon.

However, DOGE's funding rate has increased, indicating that derivative investors are actively buying the memecoin at a discount.

AMBCrypto's observation of the Dogecoin daily chart shows that its price is moving within an ascending channel, and at the time of writing, it is testing the resistance of this pattern.

The MA Cross indicator suggests a clear bullish advantage in the market, indicating a successful breakout. If this happens, DOGE testing its ATH could become a reality soon.

However, even if the memecoin surpasses its ATH, there is still a possibility of a correction afterward.

If a price discovery occurs, investors may once again see DOGE falling to $0.367 after setting a new high.

It is worth noting that DOGE may not test its ATH anytime soon. With the Fear and Greed Index entering the "Extreme Greed" phase, this seems to be the case.

Whenever this happens, it indicates a high likelihood of a price adjustment.