Dogecoin (DOGE) price has risen from the recent lows after experiencing several days of selling pressure.

The meme coin’s price recently tested the critical support at $0.14. After that, the price moved above $0.16, suggesting renewed trading activities.

Crypto analyst Coinvo, known for insights into the cryptocurrency market, has highlighted the Falling Wedge pattern in Dogecoin’s (DOGE) price chart.

This pattern, often suggesting a breakout as price movements become narrower, is formed by converging resistance and support levels.

The formation, as seen in the chart below, shows a gradual decrease in the pace of price decline.

Moreover, the decreasing slope of the wedge indicates a reduction in selling pressure.

As the wedge compresses prices and the selling pressure lessens, it may hint at an upcoming breakout.

The price needs to move above the wedge’s resistance level to confirm the bullish trend. A breakout usually occurs when there is strong buying pressure.

At the time of writing, DOGE price is trading at $ 0.17, a 3% increase in the last 24 hours.

The price continues to be higher than the crucial support levels, showcasing stability despite recent fluctuation.

The next line of resistance is at $0.20, signaling further price surge.

According to technical analysis data, when breakouts occur above resistance levels, stocks tend to go up and stay higher.

Dogecoin Market: A Closer Look

Crypto analyst Ali Martinez has shed light on the rising number of new addresses on the Dogecoin network.

In the past month alone, there has been a significant increase in new addresses, rising from 16,400 to 34,600.

This surge in new addresses can be attributed to the increasing uptake of Dogecoin and a parallel rise in investor interest.

Furthermore, there has been a noticeable escalation in whale accumulation, with large holders purchasing more DOGE. Past instances of heightened whale accumulation have typically been followed by periods of substantial price increases.

According to on-chain data, there is growth of the active wallets and the number of transactions.

There has been an increase in capital flows into DOGE, suggesting ongoing demand. This is in line with historical trends that when the market is active, prices often increase.

Therefore, if the current accumulation pattern continues, we can expect more price uptrend activities on DOGE.

Bitwise ETF Application May Bring More Interest In DOGE

The U.S. Securities and Exchange Commission (SEC) has received an application for a Bitwise Dogecoin ETF.

This is a significant development toward the introduction of an exchange-traded fund that is solely focused on the meme coin.

This particular application may affect the outlook of Dogecoin as the SEC continues reviewing the same.

If approved, the ETF may contribute to more investment in the meme coin.

The cryptocurrency has responded more positively to speculations regarding the approval of the ETF.

According to current trends, there is a 70% chance that it would be approved before the year 2025.

This is 33% higher within the recent weeks with approval expectation.

Technical Analysis Of DOGE

The Moving Average Convergence Divergence (MACD) indicator suggests a positive trend.

The MACD line stands at 0.00189 while the signal line is at -0.00783. This means that an upward MACD trend has in the past been an indicator of upward price trends.

If the MACD line maintains above the signal line, then it may mean that the buying pressure may increase.

The Chaikin Money flow is 0.17, which is above 0.1 signaling strong buying pressure in the markets. A positive CMF means that there is the inflow of capital into Dogecoin. If the buying pressure continues to be strong, DOGE could continue its upward movement.

Meanwhile, Dogecoin price recently hit a low of $0.1598 before it recovered. The price remains within key levels that have influenced previous market trends.

Various analysts have noted that increased accumulation and adoption tend to result in higher valuations. If the bulls prevail, Dogecoin price may witness a 77% surge.