- Market sentiment around Dogecoin remained bearish.
- However, indicators hinted at a price rise soon.
After a week of multiple corrections, Dogecoin [DOGE] finally got back on track. In the meantime, the latest data revealed that DOGE was following a past trend, which had earlier resulted in massive bull rallies. Let’s have a closer look at what’s going on.
Dogecoin mimics past trend
CoinMarketCap’s data revealed that DOGE witnessed a more than 3% correction over the last seven days. However, things got better in the last 24 hours as the meme coin’s price moved up marginally.
At the time of writing, Dogecoin was trading at $0.1603 with a market capitalization of over $23 billion.
While that happened, an analysis revealed that DOGE entered a pattern that it had earlier followed in 2016 and 2020.
In both previous instances, the pattern ended up initiating bull rallies. In fact, both bull rallies resulted in DOGE reaching new all-time highs.
Therefore, if history repeats itself and DOGE tests the pattern, then investors might witness DOGE reaching new highs in the coming weeks or months.
What can we expect in the short term?
Though Dogecoin’s long-term outlook was positive, thanks to the past trend reemerging again, AMBCrypto checked its metrics to better understand what to expect in the short term.
Our analysis of Santiment’s data revealed that DOGE’s trading volume dropped significantly over the last week. Another bearish metric was velocity, which dropped.
This meant that DOGE was used less often in a set time frame. Nonetheless, the memecoin’s MVRV ratio improved slightly, which can be attributed to the memecoin’s last 24-hour gains.
Source: Santiment
Despite the recent price increase, market sentiment around the meme coin continued to remain bearish. This was evident from the massive decline in its weighted sentiment.
It was also interesting to note that Dogecoin’s social volume dropped last week, reflecting a dip in the world’s largest memecoin’s popularity.
Source: Santiment
We then analyzed the meme coin’s technical indicators. We found that DOGE’s Chaikin Money Flow (CMF) registered a sharp uptick from the neutral mark.
The Relative Strength Index (RSI) also showcased a similar trend as it went up. These suggested that the chances of a price rise were high.
Source: TradingView
Is your portfolio green? Check the Dogecoin Profit Calculator
Our analysis of Hyblock Capital’s data revealed that if DOGE turns bullish, then it might first reach $0.167 as liquidation would rise at that level.
A successful breakout above that level would allow DOGE to touch $0.175 in the coming days.
Source: Hyblock Capital
Credit: Source link