- The memecoin mania might be on the horizon following this weeks gain as at press time.
- Dogecoin set to replicate past success after break out in lower timeframes.
This week, the memecoin crypto community saw a strong performance, with the top seven memecoins recording impressive gains.
Source: Plazma/X
Pepe [PEPE] led the way, achieving a trading volume higher than that of Shiba Inu [SHIB] and Dogecoin [DOGE] combined.
Dogwifhat [WIF] and Floki Inu [FLOKI] topped the charts with 41% and 39% gains, respectively, while Dogecoin lagged with an 11% increase. This raises the question: Can DOGE break and sustain its price above $0.12?
Range breakout
On the 4-hour timeframe, Dogecoin [DOGE] has successfully broken out of a narrow range after sweeping liquidity below the recent low with the price action now in an uptrend.
As the broader crypto market gears up for a potential boom in Q4 of 2024, DOGE was already showing signs of further upward movement.
Source: TradingView
The lower timeframes suggest that DOGE could also break out on higher timeframes, reinforcing a bullish outlook.
Daily and weekly timeframes
Following the breakout on the 4-hour chart, DOGE appears poised to break the descending trendline on the daily chart.
The price has formed a double bottom, a strong signal that DOGE could break back above the $0.12 level and maintain it. While DOGE might not outperform smaller meme coins, it is generally a safer bet with less volatility.
Source: TradingView
On the weekly chart, DOGE has also broken out of a range and rejected a retest level aligned with a parallel channel that has been respected for the past four years.
This suggests that DOGE market is at a crucial level, presenting a solid opportunity to add to your portfolio.
Source: TradingView
Dogecoin market cycles
DOGE is currently in its third market cycle, and the ongoing consolidation along the trendline is similar to previous cycles.
Historically, after such consolidations, DOGE has spiked parabolically, which is expected to occur again in Q4 of 2024. This indicates that DOGE could break and sustain a price above $0.12.
Source: TradingView
On-chain data analysis
On-chain data supports a bullish outlook for DOGE. Currently, 74% of holders are in profit, and large holders control 62% of the supply.
Over the last seven days, transactions exceeding $100K amounted to $1.2 billion, and total exchange net flows were $23.52 million. Of the holders, 67% have held for over a year, 31% for 1-12 months, and only 2% for less than a month.
Source: IntoTheBlock
The on-chain signals point to a bullish market sentiment, with a summary rating of 4 (mostly bullish).
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The in-the-money metric stands at 3.25% bullish, concentration is 0.13% bullish, large transactions are 0.60% bullish, and exchange signals are also bullish, with a rating of 1.
Source: IntoTheBlock
Overall, the indicators suggest that DOGE is likely to break and sustain above the $0.12 level as the crypto market continues to strengthen.
Credit: Source link