Trader optimism suggests a price increase of the meme coin Dogecoin (DOGE) by 14% or more over the next few days.
Analyst Ali Martinez reported a 75% increase in the number of open long positions on Dogecoin on the cryptocurrency exchange Binance. Additionally, there is a significant long position bias in the Binance futures market, with longs accounting for 69.5% of contracts. Both of these factors indicate that most traders are betting on a long-term increase in the price of the meme token.
The DOGE trader known by the pseudonym KrissPax noticed one of the most accurate 'Cup with Handle' patterns on the cryptocurrency price change chart, signaling the continuation of the established trend. In relation to Dogecoin, this figure indicates that:
The price of the meme coin will rise to $0.25;
After breaking through this resistance barrier, the coin will continue to appreciate.
The 'Cup with Handle' on the chart of Dogecoin price fluctuations
Currently, DOGE is worth $0.219, therefore, if the scenario described by KrissPax plays out, the meme token will gain 14% from its current value. If the upward trend does not fizzle out, there is a chance of the coin's price doubling to $0.5 by 2025.
However, on May 19, due to selling pressure, the price of Dogecoin fell below the upper line of the bearish pattern, the descending triangle. Thus, if the cryptocurrency price does not exceed $0.227, the 'Cup with Handle' will not work, and the meme coin will decrease in value by 15% or more, judging by the width of the figure.