- Multiple analysts remain bullish on Dogecoin despite failing to break out of the $0.13 to $0.16 price range.
- However, others expect a decline considering the significant fall in its 24-hour active addresses and its liquidity concerns.
Dogecoin (DOGE) remains one of the biggest winners in the ongoing broad market rally after surging by 2% in the last 24 hours, 10.7% in the last seven days, and 96% in the last 90 days. Interestingly, the 24-hour trading volume and the market cap are in parallel with the current price action with a 44% and 2% surge respectively.
According to renowned crypto analyst Ali Martinez, the asset would not slow down anytime soon as it gathers momentum to retest its multi-month highest level of $0.2 from the current price of $0.167.
Martinez Defends His Prediction
To back up his thesis, Martinez shared a chart that indicates a breakout from the Descending Triangle pattern. After this prediction, the asset embarked on a massive correction with the analyst explaining it to be a crucial move to retest the predicted resistance level. With the current formation imitating a previous cycle, Martinez believes that “History doesn’t repeat itself, but it often rhymes!!”
Now, in 2024, #DOGE has yet again broken out of a descending triangle! It is currently undergoing a 47% price correction, very similar to previous cycles, which could ignite the next $DOGE bull run!
In a recent prediction reviewed by Crypto News Flash, Martinez disclosed a rare pattern formation imitating a 2017 market situation. At that time, Doge surged by 1000% immediately after it declined by 40%. In 2021, Dogecoin also exploded by 12,000% after falling by 56%. According to Martinez, the 2024 breakout could send the price into the $1 zone after breaching multiple resistant levels.
Bullish Outlook of Dogecoin Supported by Indicators and Other Analysts
A brief research by CNF indicates that Dogecoin is enjoying a bullish sentiment with its Open Interest surging by 23%. As of May 21, the Open Interest in Dogecoin stood at $970.77 million. Also, the Open Interest volume has increased by 200% to almost $4 billion. It is important to note that Open Interest represents the number of outstanding derivatives contracts. Technically, it provides an insight into the sentiments of market participants as well as a potential future price movement.
Market data also shows that the asset’s Relative Strength Index (RSI) is currently around 56, indicating that the Dogecoin is experiencing moderate buying interest. Meanwhile, the Moving Average Convergence Divergence (MACD) was showing a reading of 0.0009.
Echoing the previous prediction, an analysis from Crypto Daily Trade Signals indicates a symmetrical triangle pattern in Dogecoin’s price movement. This implies that the asset is showing signs of breaching its immediate resistance level at $0.16980 and $0.18440.
Similarly, another analyst identified as World of Charts has indicated that any breakout for the meme coin could double its price to $0.3. For crypto analyst Kaleo, the asset is “overdue for a good rally” as shown by the movement of GameStop’s shares.
Contrary to these bullish predictions, an analyst believes that Dogecoin could set on a bearish trajectory due to the recent dump of $18.55 Million worth of the asset by an unknown whale.
According to the analyst, the meme coin has been struggling lately with the price hovering within the range of $0.13 to $0.16 without any breakthrough. On top of that, he believes that the liquidity concerns still exist with the asset’s liquidity level currently around $0.15 and $0.16. Finally, the Dogecoin holders’ position was highlighted with the 24-hour active addresses declining from 250,000 in February to 54,600 on May 18.
