- DOGE’s price has appreciated by 30% in 7 days
- Memecoin’s latest surge has left analysts eyeing another parabolic rally like in 2021
Over the past month, Dogecoin [DOGE] has seen much upside on the charts, reviving optimism of a potential memecoin-driven rally.
In fact, the memecoin is currently leading major cryptos on the weekly charts too. At the time of writing, for instance, Dogecoin was trading at $0.143. This marked a 30% hike over the past week, with DOGE noting gains on the daily and monthly charts too.
As expected, the aforementioned recent price action has left analysts talking about the memecoin’s trajectory. Some analysts, such as Ali Martinez and Kevin Capital, believe that the prevailing market trend is likely to continue.
Market Sentiment
According to Martinez, for instance, DOGE’s TD sequential signal is now flashing “Sell” on the daily charts.
What this means is that the memecoin is likely to note a short pullback, before attempting another uptrend. Usually, when investors start selling to make profits, it results in higher selling pressure, driving the prices down.
However, the analyst believes the uptrend will continue shortly after.
That’s not all though as according to Kevin, DOGE is nearing a Golden Cross on the weekly charts. Based on this analysis, Dogecoin has maintained a falling wedge over the past 6 months, which is usually a sign of a bullish reversal.
With DOGE set to make a golden cross for the first time in 4 years, accompanied by a falling wedge, the memecoin will likely see a parabolic rally.
Source: X
Historically, a golden cross means a massive rally for the memecoin. For example, the last time this happened was in January 2021. This saw Dogecoin’s price skyrocket from a low of $0.007 to $0.737 within four months – A level that still remains its ATH. This marked a 10,428.57% rally.
Therefore, if history is something to go by, and the analysis holds true, DOGE will likely see another historical surge. With its latest price action putting DOGE at a 4-month high, such a parabolic rally would push the memecoin to the highly coveted levels around $1.
What does the memecoin’s chart say?
The aforementioned analysis alludes to a promising outlook for Dogecoin. However, it’s essential to determine what other market indicators might be suggesting too.
Source: Coinglass
For starters, Dogecoin’s long/short ratio was 1.03% at press time. A ratio above 1 means that most investors are taking long positions, thus making long positions dominant in the market. Simply put, this implies that most investors are bullish.
Source: IntoTheBlock
Additionally, this bullish sentiment is further evidenced by a surge in large holders inflows. According to IntoTheBlock, Dogecoin’s large holders inflows have surged from 42.71 million to 1.12 billion.
This marked a massive hike of 2,522.34% over the past week. Such an uptick means that large holders are bullish and are anticipating further gains.
Source: Santiment
Finally, Dogecoin’s Open Interest has seen a sustained uptick over the past week. This is another sign that investors are continually opening new positions, while the existing ones hold theirs.
What next for Dogecoin?
Simply put, the prevailing market conditions are favorable and could set DOGE for further gains on the price charts.
If these conditions are maintained, the market’s favourite memecoin will hit a 5-month high of $0.174.
