In the past 24 hours, Dogecoin [DOGE] has once again displayed volatility accompanied by a significant price surge. This surge has enabled the world’s leading memecoin to break out from a bullish pattern.
So, is the path to $0.66 now clear for DOGE?
Dogecoin’s Bullish Resurgence
The market control has shifted back to Dogecoin bulls, with the memecoin’s price experiencing an impressive 8% surge in the past day.
At the time of writing, DOGE was priced at $0.46, boasting a market capitalization exceeding $68.4 billion.
This surge has allowed the coin to break out of a bullish symmetrical triangle pattern that had been formed at the beginning of November, finally breaking out on December 7th.
Notably, the technical indicators, such as MACD, have shown a bullish dominance in the market. Additionally, DOGE’s Money Flow Index (MFI) has seen an uptick, indicating strong buying pressure in the market.
This growing buying pressure could propel Dogecoin towards its next target of $0.66.
Although breakout scenarios like this are often trailed by minor corrections, typically involving a support retest before a bullish rally takes place. Hence, in the event of a pullback, investors need not panic.
Key Metrics to Consider
A positive aspect was the notable increase in Dogecoin’s trading volume by over 78% in the previous 24 hours, laying the groundwork for the ongoing bull run.
Furthermore, prominent market players were actively trading the coin, with the rise in Dogecoin’s whale transaction count over the past week underscoring this activity.
Moreover, the Long/Short Ratio for the memecoin showed an upward trend within the 24-hour timeframe.
An increase in this ratio suggests a greater number of long positions relative to short positions, indicating a growing bullish sentiment in the market.
However, data from IntoTheBlock revealed a bearish trend, showing an uptick in Dogecoin’s netflow ratio over recent days from -2.33% to 4.68%.
This increase implies that investors have been offloading their holdings, leading to a surge in selling pressure.
Historically, rising selling pressure has been followed by price corrections, potentially leading to a drop in DOGE’s price and a retest of the support level within the aforementioned bullish pattern.
Nevertheless, if the selling pressure does not impede DOGE’s upward trajectory, the coin may initially target $0.49 before aiming for $0.66, as a minor barrier to liquidation exists at that level.