- DOGE might be testing the support of a bullish pattern.
- A fresh bull rally can push DOGE towards its ATH.
As a seasoned analyst with a keen eye for spotting trends and patterns, I firmly believe that Dogecoin [DOGE] is testing its support after a brief correction. The symmetrical triangle pattern breakout we witnessed earlier this week suggests a potential bullish reversal if DOGE can hold the upper trend line as support. However, it’s crucial to keep an eye on the market sentiment and the long-short ratio, which currently indicates a bearish trend continuation.
Over the past day, Dogecoin [DOGE] hasn’t shown much activity in investor interest due to a price decline. But it’s important not to lose optimism yet, as this could be a period of calm before a surge. In essence, the recent correction might merely be a reevaluation of a critical support level.
Dogecoin breaks out of a pattern
In the past 24 hours, Dogecoin’s bearish trend has been prominent, causing its price to decrease by approximately 5% or more. This recent adjustment has placed the meme-based cryptocurrency at around $0.443 in value. With this correction, the market capitalization of Dogecoin now surpasses $65.3 billion.
The decrease in price for the world’s leading memecoin also affected its on-chain statistics unfavorably. For example, its overall sentiment became more negative – an indicator suggesting increased pessimism among investors.
The frequency of DOGE being utilized in transactions over a specific period decreased, indicating reduced usage of the memecoin. Furthermore, its MVRV (Momentum Reversal Indicator Value) dipped sharply and currently stands at 11.58%, suggesting a potential downward trend.
Additionally, further insights were uncovered about the story, with AMBCrypto’s examination revealing that DOGE managed to break through an optimistic symmetrical triangle structure.
Since November, the pattern has been evident, and since then, Dogecoin (DOGE) has remained within this pattern until it finally broke out on the 8th of December.
The recent price drop might just be a test of the upper trend line support of the pattern. If Dogecoin manages to test the support, then it might soon kickstart a fresh bull rally soon.
DOGE’s upcoming targets
Despite the recent drop potentially testing the support level, there’s a possibility that conditions could worsen for Dogecoin, as suggested by a significant decrease in the long-short ratio observed within the past 24 hours according to Coinglass’ data.
This situation suggested a higher number of sellers (short positions) compared to buyers (long positions), implying increasing pessimism among traders. Moreover, Dogecoin’s active trading positions (open interest) stayed elevated, suggesting that the current trend might persist for some time.
On the positive side, some key performance indicators suggested promise for the memecoin. For instance, at the moment of this report, the Dogecoin Fear & Greed Index stood at 37%. This indicates that the market is currently experiencing “fear”.
When the metric hits this point, it suggests a possible shift towards a bullish trend reversal in the near future. Should such a reversal occur, it would become essential for Dogecoin (DOGE) to surpass the $0.46 barrier as resistance.
Read Dogecoin [DOGE] Price Prediction 2024-2025
A successful rise above that could push the coin towards its all-time high.
Furthermore, should an “altcoin boom” occur, it’s quite possible that Dogecoin (DOGE) could hit a fresh all-time high within the next few weeks. However, if the market remains bearish, there’s a chance DOGE could fall back down to around $0.36 once more.
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2024-12-09 19:03