Analyst Captain Faibik has predicted that DOGS is poised for a 40% rally, based on a notable technical pattern.
- DOGS has bounced back 9% after a significant dip, with analysts predicting a 40% rally following a falling wedge breakout. Whale transactions have decreased, while Open Interest in DOGS has surged, signaling potential upward momentum.
Dogs [DOGS], a dog-themed memecoin built on The Open Network [TON] blockchain and inspired by the dog character “Spotty,” has been experiencing a volatile market performance since its inception.
The coin, which boasts a total supply of 550 billion tokens with over 516 billion already in circulation, is primarily distributed to Telegram users based on their activity.
While DOGS has captured the attention of the crypto community, its price action has been a rollercoaster ride, swinging between gains and losses.
The memecoin reached an all-time high of $0.001633 on the 28th of August, marking a notable achievement. However, shortly after hitting this peak, DOGS experienced a significant decline, falling by 32% from its record high.
In the past 11 hours, DOGS registered an all-time low, trading at $0.0009802.
Despite this sharp dip, DOGS exhibited signs of recovery, with a 9% price increase over the past day, bringing the memecoin to a current trading price of $0.001094 at the time of writing.
DOGS: Technical outlook and prediction
Renowned crypto analyst Captain Faibik has shared a bullish prediction for DOGS, highlighting a potential recovery in the short term. In a recent post on X (formerly Twitter), Captain Faibik noted,
“DOGS is breaking out of a Falling Wedge on the Hourly Time Frame Chart. Expecting a +40% Bullish Rally in the Short Term. Don’t miss the ride.”
Source: Captain Faibik
For context, a falling wedge is a technical chart pattern often seen as a bullish indicator. It typically forms during a downtrend, where the price experiences lower highs and lower lows, creating a narrowing range.
When the price breaks out of the upper trendline, it signals the end of the downtrend and the start of a bullish rally.
In DOGS’ case, Captain Faibik’s analysis suggested that a breakout from this pattern could lead to a 40% rally in the short term, providing optimism for holders of the memecoin.
Whale transactions and Open Interest
DOGS’ fundamentals also present some interesting insights. According to data from IntoTheBlock, whale transactions (those exceeding $100,000) have seen a notable decrease in recent days.
Source: IntoTheBlock
After peaking at 244 transactions on the 27th of August, the number of large transactions has now declined to just 64 as of press time.
This drop in whale activity may indicate a cooling off in interest from large investors, which could impact the coin’s price movement in the near term.
On the other hand, DOGS’ Open Interest—a measure of the total value of outstanding derivative contracts—has shown a significant increase.
Data from Coinglass revealed that the memecoin’s Open Interest has risen by 13.84%, reaching a valuation of $124.56 million.
Source: Coinglass
Furthermore, the Open Interest surged by 28.41%, and it sat at $1.40 billion at press time.
This increase in Open Interest suggested that traders were positioning themselves for potential price action, which could fuel further volatility in DOGS’ market performance.
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