Dogecoin was breaking out of a bullish pattern, which could soon result in DOGE touching an ATH.
- DOGE’s price increased by over 13% in the last seven days. Most metrics and market indicators looked bullish on DOGE.
The crypto market has turned bullish, allowing several cryptos to register double-digit gains, including Dogecoin [DOGE].
In fact, this just might be the beginning of a massive rally that could allow the memecoin to reach new highs in the coming days. Let’s have a look at what’s going on with DOGE.
Dogecoin: Breakout ahead?
CoinMarketCap’s data revealed that DOGE’s price rallied by more than 14% in the last seven days. The past 24 hours were also in investors favor as the memecoin’s price increased by over 4%.
At the time of writing, DOGE was trading at $0.1189 with a market capitalization of over $17 billion, making it the 9th largest crypto. Thanks to the recent price increase, over 75% of DOGE investors were in profit, as per IntoTheBlock’s data.
However, it was surprising to note that the bull rally didn’t have a positive impact on the memecoin’s social metrics. For example, its social volume declined, reflecting a drop in Dogecoin’s popularity.
Additionally, its weighted sentiment also dropped sharply. This suggested that market sentiment around the memecoin was bearish.
Source: Santiment
However, market sentiment might change soon as the world’s largest memecoin has a trick up its sleeve.
World Of Charts, a popular crypto analyst, posted a tweet highlighting an interesting development. As per the tweet, DOGE was breaking above a descending channel.
The breakout might initiate a bull rally towards the upper resistance of yet another bullish pattern. If Dogecoin jumps above the resistance, then investors might witness the memecoin touching new highs in the coming weeks.
Source: X
DOGE’s bull rally confirmed?
AMBCrypto then planned to assess DOGE’s metrics to better understand whether they hint at a bull rally. Our analysis of Sanrtiment’s data revealed that Dogecoin’s MVRV ratio turned positive on the 15th of July.
Its velocity also increased, meaning that DOGE was used more often in transactions within a set timeframe. However, the memecoin’s volume dropped while its price increased. Usually, such developments are considered bearish.
Source: Santiment
Like volume, the memecin’s Chaikin Money Flow (CMF) registered a downtick, hinting at a price drop. Nonetheless, the MACD displayed a bullish advantage in the market.
The Relative Strength Index (RSI) also moved northward, suggesting that its price would continue to rise.
Source: TradingView
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Our analysis of Hyblock Capital’s data revealed that if the bulls continue to dominate, then DOGE’s price might first touch $0.129 as liquidation would rise. Generally, an increase in liquidation results in price corrections.
Therefore, it would be crucial for Dogecoin to break above that mark in order to reach a new all-time high.
Source: Hyblock Capital
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