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- Dogecoin is on track to soar based on indications from its historical patterns.
- Top market analyst believes a 700% return is feasible for Dogecoin this year.
Dogecoin (DOGE), one of the world’s largest memecoin is finally eyeing a major leap after a week of multiple corrections. The recent movement of DOGE’s price is reminiscent of historical patterns, which signals a potential bull rally.
The Tides Change for Dogecoin
According to the latest data from MarketCap, DOGE saw over 3% correction over the past week. However, in the last 24 hours, the momentum has picked up for the memecoin as the price increased marginally. Recent analysis suggests DOGE started to resemble a pattern previously followed in 2020 and 2016.
#Doge monthly : it’s just a symphony !#dogecoin $DOGEUSD #XD #FTW #PeopleCurrency #ThisIsTheWay @xpayments 𝕏Ð pic.twitter.com/bPiPcNTH3l
— Olivier Ð 𝕏 (@Dark64) June 1, 2024
In both prior examples, the pattern started bull rallies, leading to new all-time highs for DOGE. If history repeats itself and DOGE tests the pattern, investors may see new highs in DOGE in the upcoming weeks or months.
While the price ticked upwards, overall market sentiment surrounding DOGE remains bearish. This is evident from the decline in weighted sentiment and a drop in social volume, reflecting a decrease in public interest. Moreover, the Cumulative Volume Delta (CVD) for DOGE has been declining since May 27th. This suggests that sellers are presently in control of the market, per Crypto News Flash’s earlier announcement.
On the other hand, DOGE’s short-term outlook presents a mixed picture. A review of Santiment’s data found that DOGE’s trading volume declined dramatically over the past week. Another unfavorable statistic was velocity, which plummeted, indicating DOGE was utilized less frequently during a certain period. However, a slight improvement in the MVRV ratio suggests a positive impact from the recent price gains.
Technical Indicators Offer Hope to DOGE
On the technical front, there are some positive signs. DOGE’s Chaikin Money Flow (CMF) and Relative Strength Index (RSI) indicate a potential price rise. Also, data from Hyblock Capital suggests that overcoming resistance at $0.167 could lead to a further increase towards $0.175.
As of this writing, DOGE is trading at $0.1578, down by 2.2% in the past 24 hours and a market cap of $22.8 billion.
However, the trading volume increased by 14.5% to $868 million, indicating a bullish momentum from investors and traders. The rise in activity can be attributed to speculative interest in the Ethereum ETF, which has influenced the broader crypto market.
Crypto trader and analyst, Mags, has expressed bullishness for Dogecoin’s price. As formerly reported by Crypto News Flash, the analyst, who has been actively accumulating Dogecoin, expects a 700% return in this cycle, projecting a price target of over $1.
Similarly, crypto analyst Ali Martinez predicts that Dogecoin could see a 100% rally soon if it breaks through resistance at $0.166 and $0.171. This resistance represents an impediment to upward movement and is based on the accumulation of roughly 10 billion DOGE by 75,500 addresses within this range.
