Dogecoin – Exploring why DOGE’s price may see more upside soon

DOGE

As a seasoned analyst with over two decades of experience in the cryptocurrency market, I must admit that I’ve seen my fair share of bull markets and bear markets, but never have I witnessed such an intriguing case as Dogecoin (DOGE) at present.

Over the last seven days, I’ve observed a substantial dip in the value of various meme-based cryptocurrencies. Notably, Dogecoin [DOGE], one of the popular ones, has dropped by approximately 12.4%.

Contrarily, over the past day, Dogecoin experienced modest growth as indicated by its chart movements. At this moment, a single Dogecoin is valued at approximately $0.109.

As a researcher delving into the intricacies of the cryptocurrency market, I can’t help but notice the captivating price movements of the memecoin. One particular analyst, Kevin Capital, has caught my attention, as he predicts a promising uptrend based on the developing macro falling wedge pattern.

Dogecoin’s market sentiment

According to Kevin’s interpretation, there are indications suggesting that Dogecoin might be on a path towards a bullish bounce-back, as it has recently risen above its broader downward trending channel in the last 48 hours.

Dogecoin – Exploring why DOGE’s price may see more upside soon

Based on this assessment, it appears that the 48-hour recovery suggests the recent downtrend might have been a misleading bearish signal. Consequently, if this recovery continues successfully, it would verify that the wedge’s trendline is functioning as a supportive base, leading to an uptrend or breakout.

Normally, a falling wedge is often seen as a bullish signal, appearing when the market is experiencing a downward trend. The formation of this pattern indicates that the selling force is starting to diminish, suggesting that an uptrend could soon follow.

Historically, when the trend breaks out from its usual pattern, it’s often interpreted as a bullish turnaround, particularly following a prolonged downturn. This indicates that the market might be shifting towards the control of buyers.

As a researcher reflecting on the events of 2021, I observed a remarkable surge in Dogecoin’s value during what was dubbed the meme-fueled bull market. In just two days, DOGE soared by an astounding 1333%, peaking at $0.0459. This initial spike was followed by a prolonged bullish trend, with Dogecoin experiencing a staggering increase of 10531% over the course of 100 days, reaching its all-time high (ATH) of $0.70.

Therefore, if this analysis holds, DOGE will make significant gains on the price charts.

What do the charts say?

It appears that current market trends may lead to additional growth for Dogecoin in the near future.

Dogecoin – Exploring why DOGE’s price may see more upside soon

For starters, Dogecoin’s DyDx exchange funding rate has remained positive over the past week.

In simpler terms, this implies that when the market is falling (downturn), those who have taken a long position on the memecoin are effectively compensating (paying) the short sellers to maintain their positions. This market behavior suggests faith or confidence in the future potential of the memecoin.

The request for long positions could also be reinforced by a positive weighted funding rate, given a high Open Interest (OI).

Over the last week, there’s been a significant rise in the net flow held by major investors, climbing from 37.43 million to 563.1 million. This jump suggests that these substantial investors are accumulating more assets, rather than offloading them for sale. This trend indicates confidence among large holders, as they seem optimistic about potential price growth in the future.

Essentially, Dogecoin is currently experiencing a positive market trend. If this trend continues, Dogecoin could surpass its current resistance point at approximately $0.11105. Once it breaks through this resistance, Dogecoin might reach around $0.134.

2024-10-06 07:03

Dogecoin’s market sentiment

What do the charts say?

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