DOGE has spiked 3.05% on the chart in the last 24 hours
Currently, this memecoin is in an accumulation phase from $0.10 to $0.13
Dogecoin [DOGE], the largest cryptocurrency in the memecoin segment by market cap, has seen a significant increase in price over the past month. In fact, at the time of writing, DOGE is trading at $0.011, up 3.05% over the past 24 hours, with positive performance on both its weekly and monthly charts.
However, despite Dogecoin's continued rise in value, the coin is still down about 85% from its 2021 all-time high of $0.73. DOGE is also currently below its yearly high of $0.228, down 51.32%.
However, the Dogecoin community remains optimistic, especially given the recent price increase of the crypto. The current market situation has also led many staking analysts to speculate on the possibility of a memecoin-led bull market.
One of those analysts is Kevin Capital, who suggests that DOGE is at an ideal buying moment, before a real surge.
What does market sentiment say?
In his analysis, Kevin noticed that Dogecoin is still attempting to conduct a successful test of the bullish trendline of a descending wedge. This is after completing a 60% correction in a typical bull market.
Source: X
Therefore, a successful test of this level would send DOGE to a local high, above the $0.13 resistance.
Historically, the last time Dogecoin broke out of this channel, it climbed to an ATH in 2021. In fact, the 2024 boom also saw DOGE grow to its yearly high.
So based on this analogy, a successful test and breakout would push memecoin price to a new high. At least on a yearly basis.
What does the DOGE price chart say?
While the above observations are positive, it is also necessary to determine the fundamental reasons for the market.
Source: Coinglass
For example, Dogecoin's long/short ratio, a measure that examines the buying and selling volume of holders, remains consistently above 1 on 4-hour charts.
Currently, the long/short ratio is 1.07. This shows that long position buyers have the upper hand, with many investors expecting the price to rise.
Source: Coinglass
Additionally, Dogecoin’s Spot Netflow has remained negative for the past two weeks, implying that investors are withdrawing funds from exchanges to personal wallets.
Holding it at this negative level will result in a supply squeeze, which can cause high demand but low supply – Pushing prices higher.
Source: Coinglass
Finally, DOGE Options trading volume increased by 118.21% to $120.64 million. This increase usually means that more traders are entering the market – a signal of increased market activity.
Additionally, the increase in Call Option trading volume implies that many investors are optimistic and expect the price to continue to rise.
Can Dogecoin surge?
According to analysis from TinTucBitcoin, DOGE has experienced multiple rejections at the $0.130 resistance level. As the memecoin is enjoying bullish sentiment in the market, it could be primed for further upside on the price chart.
Currently, its price is stuck in a consolidation range between $0.10 and $0.13. A breakout above $0.13 would send DOGE to a 3-month high of $0.14. Conversely, a breakdown would send memecoin below $0.10.
#tintucbitcoin #BinanceTurns7 #MarketDownturn #IntroToCopytrading #Write2Win
