Unveiling DOGE’s Short-Term Price Targets
Over the past month, Dogecoin [DOGE], the leading memecoin in terms of market capitalization, has seen a considerable increase in value. Currently, DOGE is being traded at $0.011, marking a 3.05% rise in the last 24 hours. The memecoin has also shown growth on weekly and monthly charts.
Despite the recent surge in Dogecoin’s value, it still stands nearly 85% below its all-time high (ATH) of $0.73 from 2021. At present, it is also 51.32% lower than its annual peak of $0.228.
Nevertheless, optimism prevails within Dogecoin’s community, driven by the coin’s recent positive performance. Market conditions have instilled confidence among analysts who are foreseeing a potential uptrend led by memecoins.
Among these analysts is Kevin Capital, who believes that now is the opportune moment to invest in DOGE before a significant surge.
Interpreting Market Sentiment
Based on Kevin’s analysis, Dogecoin is in the process of establishing a successful bullish retest within a macro falling wedge pattern. This comes after a standard 60% correction during its previous bull market cycle.
If this retest proves successful, DOGE is expected to climb to a new local high, surpassing the $0.13 resistance level.
Looking back, Dogecoin’s breakout from this pattern has historically led to notable price gains, including the ATH in 2021 and the yearly peak in 2024.
Therefore, the current scenario points towards a potential price surge to new highs, at least on an annual basis.
Evaluating DOGE’s Price Chart
While the optimistic view is encouraging, it is essential to analyze the underlying market fundamentals to gain a comprehensive perspective.
For instance, Dogecoin’s long/short ratio, which measures the taker buy and sell volume, has consistently remained above 1 on the 4-hour charts.
Currently standing at 1.07, this ratio indicates a dominance of long-position buyers, signaling a positive market sentiment and anticipation of a price uptrend.
In addition, DOGE’s Spot Netflow has been negative for the past two weeks, indicating a trend of investors moving their DOGE tokens from exchanges to private wallets.
This pattern is likely to lead to a supply squeeze, with high demand and limited supply pushing prices upwards.
Moreover, DOGE’s Options volume has surged by 118.21% to $120.64 million, reflecting a heightened market activity with a considerable influx of traders.
An increased volume of call Options signifies a bullish sentiment among investors, foreseeing a further rise in prices.
Potential for Dogecoin’s Rally
According to CryptoCrypto’s analysis, Dogecoin has faced resistance at the $0.130 level in multiple instances. With the current positive market sentiment, DOGE could be well-positioned for further price gains.
Presently, the price of DOGE is consolidating within the range of $0.1 to $0.13. A breakthrough above $0.13 is anticipated to propel DOGE to a 3-month high of $0.14, while a breakdown could result in the memecoin sliding below $0.1.