- DOGE surged by 30. 45% over the past month.
- Market fundamentals suggested investors’ favorability as analysts eye a major pump.
As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I must admit that the recent surge of Dogecoin (DOGE) has caught my attention. The memecoin’s impressive 30.45% rise over the past month is hard to ignore, especially when backed by strong market fundamentals.
For the last three weeks, Dogecoin (DOGE) has consistently been trading higher than its Exponential Moving Average (EMA) of 200, indicating a robust upward momentum or bullish market condition.
The ongoing increase in Dogecoin has sparked extensive debate among its community, as analysts foresee a potential surge in the near future.
Prevailing market sentiment
During a study, the CEO proposed the idea that Dogecoin’s (DOGE) market behavior appeared to resemble the ‘Reversal Box’ pattern observed in 2020.
Consequently, the memecoin has formed three higher lows and broke out of major resistance.
In a given situation, when Dogecoin (DOGE) develops a Reversal Box configuration, it often indicates that the period of stagnation is ending and there’s a possibility for a bullish trend to start emerging.
In other words, when the price experiences higher lows, this implies that the demand is gradually overpowering the supply, as the sellers’ influence weakens while the buyers take control of the market.
In late 2020, Dogecoin experienced a significant increase following the formation of this pattern. For instance, Dogecoin jumped from approximately $0.0023 to $0.00048 during that period. Additionally, the meme-based cryptocurrency skyrocketed from $0.006 to as high as $0.088, yielding a staggering growth of 1366.67% within the same year.
This surge prepared for the 2021 major Dogecoin bull run to ATH.
Therefore, if history repeats itself, the memecoin will experience a major pump as it did in 2020.
DOGE’s price chart indicates…
Although the CEO’s analysis on Dogecoin seems optimistic, it’s crucial to also examine other key factors influencing the market.
The question is does the current market conditions support a potential rally?
For starters, Dogecoin’s active addresses have experienced sustained growth over the past month.
As we speak, Dogecoin (DOGE) is experiencing an all-time high in active addresses this month with approximately 764,840 users participating. This indicates a significant level of interest and engagement with the meme cryptocurrency.
Furthermore, the MVRV Long/Short ratio for Dogecoin has been climbing steadily during the last month, increasing from a low of -17.13 to its current value of -7.76. At this moment.
From my perspective as an analyst, it appears that long-term investors are expressing confidence in the potential future worth of this memecoin. Consequently, when the market manages to overcome the selling pressure instigated by short-term traders, we might witness a surge in its price.
To wrap up, there’s been a significant increase in investment by major shareholders during the last seven days. This surge is an impressive 358.64%, rising from a minimal 252.92 million to a current 1.16 billion.
A rise in investments indicates that investors believe DOGE’s price will continue to go up, so they are pouring more money into it.
What next for Dogecoin?
At the time of writing, DOGE was trading at $0.1396. This marked a 3.5% decline over the past day.
However, the memecoin has been on an upward trajectory, hiking by 30.45% over the past month.
Realistic or not, here’s DOGE market cap in BTC’s terms
Based on the market indicators we’ve looked at, it appears that Dogecoin is currently enjoying positive market trends which might lead to further increases in its value.
Given that the present market trends continue, it’s likely that Dogecoin (DOGE) will rise towards $0.1658 in the near future.
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2024-10-23 20:08