The most prominent memecoin, Dogecoin [DOGE], is preparing for the final quarter of the year amid a crypto market recovery following a recent downturn triggered by tensions between Israel and Iran.
DOGE is predicted to outperform other memecoins in a rally during this period. Past trends in the DOGE/BTC pair indicate that Dogecoin might be heading into an intriguing phase.
Historically, DOGE pumps have initiated 235 days post Bitcoin halving, leading to substantial gains on two occasions.
This year, a similar trend is emerging, hinting at the possibility of DOGE experiencing a surge of over 90% in the last quarter.
The recurrence of these patterns strongly suggests an optimistic outlook for Dogecoin in Q4.
Positive Dogecoin RSI Movement
An important factor bolstering this positive outlook is the emergence of a divergence signal, often signaling a potential trend reversal or continuation.
In this instance, traders are expecting a shift towards bullish momentum for DOGE. This divergence occurred when Dogecoin was trading below the 200-week moving average.
Nevertheless, the Relative Strength Index (RSI) rebounded from the oversold region, indicating that this could be an opportune moment to open long positions, with the anticipation of DOGE mirroring gains from previous cycles—potentially surpassing 90%.
Percentage of Long Accounts Signal
Another significant indicator pointing towards a promising Q4 for DOGE is the recent percentage of long accounts.
Based on Hyblock data, the percentage of long accounts trading Dogecoin has remained consistent over the last 24 hours, sitting at the 96th percentile. This stability implies that long traders are dominating, reinforcing the optimistic sentiment surrounding DOGE.
Moreover, a slight uptick in the long account percentage has impacted Dogecoin’s open interest, which has slightly decreased. A decrease in open interest typically suggests that short positions are leaving the market, further endorsing a positive forecast for Dogecoin.
Sentiment Analysis: Crowd vs. Smart Money
The sentiment among both institutional traders and the general public aligns, with both sides leaning towards a positive outlook for DOGE. This sentiment provides additional support to the notion that Dogecoin is primed for gains in the final quarter of the year.
Despite the aligned sentiment, external factors like geopolitical tensions could sway DOGE’s price trajectory. Recent geopolitical tensions between Israel and Iran had a noticeable impact on the broader crypto market, underscoring the volatile nature of financial markets.
Dogecoin seems positioned for significant growth in Q4, with historical trends, technical indicators like the RSI, and market sentiment all indicating a bullish trend.
While external influences remain a variable, the current scenario suggests that DOGE could replicate its past performance, potentially resulting in gains exceeding 90% by year-end.