Dogecoin (DOGE), the self-proclaimed “internet dog money,” is back in the spotlight, experiencing a bullish surge alongside the broader crypto market. But is this just a fleeting meme-fueled frenzy, or could DOGE truly reach new heights?
DOGE on the Rise, Breaking Out or Breaking Down?
CoinMarketCap data confirms a 14% price increase for DOGE over the past week, with an additional 4% jump in the last 24 hours. At the time of writing, DOGE sits comfortably at $0.1189, boasting a market cap exceeding $17 billion and ranking as the 9th largest cryptocurrency.
This recent price surge has put a smile on investors’ faces, with IntoTheBlock data revealing that over 75% of DOGE holders are currently in profit. However, social media metrics paint a contrasting picture. A decline in both social volume and weighted sentiment suggests that overall public interest and sentiment towards DOGE remain bearish.
Technical Analysis: A Bullish Pattern in Play?
A glimmer of hope emerges from the world of technical analysis. Popular crypto analyst World Of Charts identified a potential breakout for DOGE. Their tweet highlights a technical pattern suggesting a possible bull run towards the upper resistance of another bullish setup. If DOGE successfully surpasses this resistance level, it could propel the memecoin to new highs in the coming weeks.
Conflicting Metrics: A Bullish Case with Bearish Whispers
While the potential breakout pattern offers a bullish narrative, a closer look at DOGE’s metrics reveals a mixed bag. Santiment’s data shows a positive MVRV ratio (Market Value to Realized Value) and an increase in velocity, indicating more frequent DOGE transactions. However, a drop in volume despite a price increase is a cause for concern, as it often signifies a lack of buying pressure.
Similarly, the Chaikin Money Flow (CMF) dips downwards, hinting at a potential price correction. Yet, the MACD and RSI indicators maintain bullish signals, suggesting continued upward momentum.
Analysts at Hyblock Capital add another layer to the equation. They predict an initial price target of $0.129 for DOGE if the current sentiment continues. However, this rise would trigger liquidations, potentially leading to a price correction. Therefore, breaking above this level becomes crucial for DOGE to reach a new all-time high.
A Cautious Look at the “Dogefather” of Memes
Dogecoin’s recent price surge is undeniable, and the potential breakout pattern adds fuel to the possibility of reaching new highs. However, conflicting technical indicators and declining social media interest urge caution. Investors should closely monitor DOGE’s price action and key metrics in the coming days to gain a clearer picture of the memecoin’s true trajectory.
Also Read: Dogecoin Breaks Out: Analyst Predicts 100% Price Increase Despite Bearish EMAs
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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