A key Dogecoin metric flashed a buy signal, indicating a price rise. Market sentiment around the memecoin also turned bullish.
- DOGE’s price surged by 6% in the last 24 hours. The memecoin’s funding rate dropped substantially.
Dogecoin [DOGE], the world’s largest memecoin, showcased a commendable performance last week. Investors should buckle up as the memecoin’s price might increase further as a key indicator flagged a buy signal for DOGE. Let’s see what’s going on.
Dogecoin invites the bulls
CoinMarketCap’s data revealed that DOGE’s price surged by over 6% in the last seven days. In the last 24 hours alone, the memecoin’s value increased by over 2%.
At the time of writing, DOGE was trading at $0.1252 with a market capitalization of over $18 billion, making it the 9th largest crypto.
Thanks to the recent price increase, the memecoin’s weighted sentiment went into the positive zone. This meant that bullish sentiment around the coin was dominant in the market.
Additionally, its social volume also remained high, reflecting its popularity in the market.
Source: Santiment
In the meantime, a key indicator suggested that it might be the right time to build DOGE.
Ali, a popular crypto analyst, recently posted a tweet highlighting an important development. As per the tweet, Dogecoin’s TD sequentially flagged a buy signal, suggesting that its price might rise soon.
Is DOGE poised for a rise?
AMBCrypto then had a look at DOGE’s on-chain metrics to find out whether it’s ready for a pump. As per our analysis of Santiment’s data, DOGE’s MVRV ratio improved sharply last week, which was a bullish signal.
Additionally, DOGE’s funding rate turned red. Generally, prices tend to move the other way than the funding rate, further indicating a price increase.
However, there was a problem with the memecoin, as its open interest dropped while its price increased. This meant that there were chances for the memecoin’s price to decline.
Source: Santiment
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AMBCrypto’s analysis of TradingView’s data revealed that the MACD displayed the possibility of a bullish crossover. The relative strength index (RSI) registered a downtick, indicating a possible price drop.
A similar declining trend was also noted on the Chaikin Money Flow’s (CMF) chart, meaning that the chances of a price correction are high.
Source: TradingView
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