Is A Major Rally Coming For Dogecoin?
There has been a notable increase in the market value of Dogecoin. Not only has the price recorded gains in the last 24 hours, but it has also recorded weekly gains of over 10%.
This uptrend aligns with the broader crypto market, which has seen a bullish trend. This has led to increased investment and attention in the meme coin.
The rise
It should be noted that the rise in the price of DOGE is not just a reflection of the current market dynamics. It also shows that investor confidence is growing in the potential of the asset for further gains.
According to analysts, the positive market trend highlights some significant technical patterns in the price movement.
A symmetrical triangle pattern has been identified on the chart of the meme token. This pattern is regarded as a consolidation phase that is seen before a breakdown or breakout in price.
This indicates that DOGE could possibly be on the cusp of moving ahead with its upward trajectory.
The analysis
The symmetrical triangle pattern shows that the meme token faced a major resistance level at $0.1545. But, there was strong support at $0.1513, thanks to the 50-day Exponential Moving Average (EMA).
At the time of writing, the price of DOGE had climbed above the 50-day EMA. This indicates a bullish trend.
However, this upward trend will only be confirmed if DOGE manages to break past the resistance level at $0.1595.
The Relative Strength Index (RSI) also supports the bullish outlook, as it is above the 50 mark. This indicates that the market has a buying trend.
The immediate resistance level for Dogecoin is $0.1595. The next resistance levels are $0.1698 and $0.1844.
If the largest meme token in the market manages to overcome these levels, it could lead to significant increases in price.
But, if the price drops below $0.15100, then investors need to be careful. The current RSI shows that there is room for profit.
Rising interest
There has also been a significant increase in open interest in DOGE, as it climbed to $946.56 million. There has also been a 100% increase in volume, along with open interest.
This highlights the rising investor interest in Dogecoin and growing market activity. While the metrics are bullish, the current trend is not benefitting all market participants.
The total liquidations of Dogecoin are more than $400,000. Most of these losses have been incurred by long traders.
This means that the market presents a lot of risks, even though it is trending upwards. This is particularly true for those who are on the other end of price movements.
As far as the future is concerned, the price chart of the meme token shows that there could be a breakout from the previous low.
If DOGE can breach the low at $0.168, this could lead to a minor retracement. This would set the stage for a strong upward movement. It would clear the path for DOGE to rise to the $0.3 mark.
