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Cryptocurrency News Articles
Dogecoin (DOGE) Primed for a Bull Run as Market Sentiment Turns Positive
Oct 13, 2024 at 12:00 pm
Dogecoin [DOGE], the world's largest memecoin by market cap, has appreciated by a significant margin over the past month.
Dogecoin (DOGE) price analysis for March 23 reveals that the meme coin has appreciated significantly over the past month, trading at $0.011 at the time of writing. This marks a 3.05% gain in the last 24 hours, with DOGE also posting gains on the weekly and monthly charts.
However, despite the sustained hike in Dogecoin’s value, the meme coin remains almost 85% below its 2021 ATH of $0.73. At press time, it was also 51.32% below its yearly high of $0.228.
Even so, many in Dogecoin’s community remain optimistic, especially in light of the crypto’s recent bullish action. Current market conditions have also left analysts betting on a potential memecoin-driven bull market.
One of these analysts is Kevin Capital who suggested that DOGE is currently at the perfect buying opportunity, before it surges for real.
Dogecoin still attempting to create a successful bullish retest of a macro falling wedge, after completing its typical bull market 60% correction. A successful retest of this level will see DOGE hike to a local high, surpassing the $0.13 resistance level.
Historically, the last time Dogecoin broke out of this channel, it went on to climb to its ATH in 2021. Even 2024’s breakout saw DOGE surge to a yearly high. Based on this analogy, a successful retest and breakout will push the meme coin’s price to a new high, at least on a yearly basis.
While the aforementioned observation is a positive one, it’s essential to determine what market fundamentals have to say. For instance, Dogecoin’s long/short ratio, a metric that examines the taker buy and sell volume, remained above 1 on the 4-hour charts. At press time, the long/short ratio was 1.07. This suggested that long-position buyers have been dominant, with many investors anticipating the price to climb.
Furthermore, Dogecoin’s Spot Netflow has remained negative over the past 2 weeks. This meant that investors were withdrawing their DOGE tokens from exchanges to private wallets. A sustained stay at this level will result in a supply squeeze, which occurs when there is high demand with less supply – driving prices up.
Finally, DOGE’s Options volume surged by 118.21% to $120.64 million. Such a surge usually entails that many traders are entering the market – a sign of rising market activity. Thus, an uptick in call Options volume implies that many investors are bullish and expect the price to rise even further.
According to AMBCrypto’s analysis, DOGE has faced multiple rejections at the $0.130 resistance level. Since the meme coin is experiencing positive market sentiment now, it may be well positioned for more gains on price charts.
Right now, its price is stuck in the consolidation range between $0.1 and $0.13. A break above $0.13 will see DOGE hit a 3-month-high of $0.14. A breakdown will see the meme coin dip below $0.1.
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