Dogecoin (DOGE), the leading memecoin in the cryptocurrency market, appears to be gearing up for a major price movement. Traders have shown optimism, indicating strength on the weekly timeframe for the past four weeks.
Despite recent market fluctuations due to geopolitical tensions in the Middle East, there is a possibility of recovery. Historically, following a bullish crossover on the weekly chart of the moving average convergence divergence (MACD), DOGE has experienced rallies of 90% and 180%.
Currently, there are signs of a new bullish MACD crossover forming, potentially leading DOGE to replicate its previous 180% surge. Additionally, buying momentum has been on the rise, hinting at a potential breakout in the near future.
At the moment, Dogecoin is displaying bullish signals after a retest of its macro falling wedge pattern on the daily chart. Sustaining this upward trend could result in further gains if DOGE bounces from its current support level.
However, a failure in this bounce could prompt a correction for DOGE, leading to downside pressure on the memecoin and potentially impacting other alternative cryptocurrencies.
DOGE’s Monthly Cycles and Projected Gains
Reviewing past trends, Dogecoin has consistently reversed key levels in its previous monthly cycles, indicating the beginning of bull markets. This pattern first emerged in 2017, resulting in a 90% rally.
In 2021, a similar pattern led to a 180% surge. Given the current extended consolidation phase and market dynamics, there is a possibility of another 180% rally in the future.
This trend, combined with historical data, suggests a strong potential for increased price gains, laying the groundwork for another bullish trend on the charts.
Network Expansion and Market Trends
Dogecoin’s network has experienced significant growth recently. In the past week alone, new DOGE addresses have surged by 72%, with over 19,600 new addresses being created just yesterday.
This growth reflects rising interest in DOGE, indicating that traders and investors are gearing up for potential price appreciation.
However, external factors such as geopolitical tensions in the Middle East could still influence market dynamics and impact DOGE’s ability to reach its projected target.
Liquidation Levels and Price Trends
DOGE has witnessed substantial liquidation of major short positions, hitting a crucial target at $0.1032, resulting in the liquidation of $34.9 million in long positions.
The upcoming key liquidation zones will play a vital role in determining DOGE’s future price movements. Traders will closely monitor these levels to gauge whether Dogecoin can sustain its bullish momentum or face increased volatility in the upcoming weeks.
Backed by strong technical indicators, network expansion, and historical precedents, Dogecoin is strategically positioned to achieve significant gains.
If market conditions align favorably, DOGE has the potential to reach its 180% rally target. Nevertheless, traders should exercise caution given the potential risks involved.