- The price of DOGE has increased by 30% in 7 days
- Memecoin’s latest surge has analysts looking forward to another parabolic rally like 2021
Over the past month, Dogecoin [DOGE] has seen plenty of upside on the charts, reviving optimism about a potential memecoin-driven rally.
In fact, the memecoin is also currently leading major cryptos on the weekly charts. For example, at the time of writing, Dogecoin was trading at $0.143. This marked a 30% increase over the past week, with DOGE also posting gains on the daily and monthly charts.
As expected, the aforementioned recent price action has got analysts talking about the memecoin’s trajectory. Some analysts, like Ali Martinez And Kevin Capitalbelieve that the prevailing market trend is likely to continue.
Market sentiment
According to Martinez, DOGE’s sequential TD signal now flashes ‘Sell’ on the daily charts.
What this means is that the memecoin will likely record a brief pullback before attempting a new uptrend. When investors start selling to make a profit, it usually results in increased selling pressure, causing prices to fall.
However, the analyst believes that the uptrend will continue shortly thereafter.
But that’s not all, because according to Kevin, DOGE is approaching a Golden Cross in the weekly charts. Based on this analysis, Dogecoin has maintained a bearish wedge over the past six months, which is usually a sign of a bullish reversal.
With DOGE set to make its first golden cross in four years, accompanied by a falling wedge, the memecoin is likely to see a parabolic rally.
Source:
Historically, a golden cross means a huge rally for the memecoin. For example, the last time this happened was in January 2021. This caused the price of Dogecoin to skyrocket from a low of $0.007 to $0.737 within four months – a level that still remains its ATH. This marked a rally of 10,428.57%.
Therefore, if history is anything to go by and the analysis is correct, DOGE will likely experience another historic surge. With DOGE at a four-month high due to its latest price action, such a parabolic rally would push the memecoin to the coveted level around $1.
What does the memecoin graph say?
The above analysis points to promising prospects for Dogecoin. However, it is essential to determine what other market indicators might also suggest.
Source: Coinglass
For starters, Dogecoin’s long/short ratio at the time of writing was 1.03%. A ratio above 1 means that most investors are taking long positions, making long positions dominant in the market. Simply put, this means that most investors are bullish.
Source: IntoTheBlock
Moreover, this bullish sentiment is further evidenced by a sharp increase in inflows from major investors. According to IntoTheBlock, the inflow of large holders of Dogecoin has increased from 42.71 million to 1.12 billion.
This marked a huge increase of 2,522.34% in the past week. Such an upswing means that large holders are bullish and expect further gains.
Source: Santiment
Finally, Dogecoin Open Interest has seen a sustained increase over the past week. This is another sign that investors are continually opening new positions while maintaining existing positions.
What next for Dogecoin?
Simply put, prevailing market conditions are favorable and could put DOGE on the price charts for further gains.
If these conditions hold, the market’s favorite memecoin will hit a five-month high of $0.174.
Credit : ambcrypto.com
