With a surge in its price over the last month, Dogecoin [DOGE] has reignited hopes of a potential rally driven by the memecoin phenomenon.
Currently, Dogecoin is outperforming major cryptocurrencies even on the weekly charts. At this moment, the price stands at $0.143, reflecting a 30% increase over the past week, with upward trends also visible on the daily and monthly charts.
Following this recent price movement, analysts have started discussing the potential trajectory of the memecoin. Some experts, like Ali Martinez and Kevin Capital, are optimistic about the ongoing market trend.
Sentiment in the Market
According to Martinez, the TD sequential signal for DOGE is now indicating a “Sell” on the daily charts.
This could signal a short-term pullback in the price as profit-taking leads to increased selling pressure and subsequent price declines.
Nevertheless, Martinez believes that the uptrend is likely to resume soon after this pullback.
Adding to the optimism, Kevin suggests that Dogecoin is approaching a Golden Cross on the weekly charts. The presence of a falling wedge pattern over the past 6 months indicates a potential bullish reversal.
Anticipating a golden cross occurrence for the first time in 4 years, accompanied by a falling wedge pattern, Dogecoin could witness a significant rally.
Historically, a golden cross has often preceded a major uptrend for Dogecoin. In January 2021, a similar event propelled Dogecoin from $0.007 to $0.737 within four months – an all-time high that still stands. This surge represented a remarkable 10,428.57% increase.
Hence, if history is any indicator and the current analysis holds true, Dogecoin might be on the brink of another substantial rally. With its recent price action pushing it to a 4-month high, a potential parabolic surge could propel the memecoin towards the coveted $1 mark.
Chart Analysis of the Memecoin
The analysis so far paints a promising picture for Dogecoin. However, it is crucial to consider other market indicators to get a comprehensive view.
Currently, the long/short ratio for Dogecoin stands at 1.03%. A ratio above 1 indicates a predominance of long positions, suggesting an overall bullish sentiment among investors.
Moreover, there has been a significant increase in inflows from large holders, as reported by IntoTheBlock. The surge in large holders’ inflows from 42.71 million to 1.12 billion represents a massive spike of 2,522.34% in the past week, signaling bullish sentiment and anticipation of further gains.
Furthermore, Dogecoin’s Open Interest has shown a consistent uptrend over the last week, indicating a continuous influx of new positions while existing ones remain intact.
Future Outlook for Dogecoin
Given the favorable market conditions, Dogecoin seems poised for additional gains on the price charts.
If the current conditions persist, this beloved memecoin could surge to a 5-month high of $0.174.