Dogecoin [DOGE], the world’s largest memecoin by market capitalization, has seen a significant increase in price over the past month. In fact, at the time of writing, DOGE is trading at $0.011, up 3.05% over the past 24 hours, with the memecoin also rising on its weekly and monthly charts.
However, despite Dogecoin's continued rise in value, memecoin remains nearly 85% below its 2021 ATH of $0.73. At press time, it is also 51.32% below its yearly high of $0.228.
Despite this, many in the Dogecoin community remain optimistic, especially given the cryptocurrency's recent price surge. The current market situation has also led analysts to bet on a potential memecoin-fueled bull market.
One of these analysts is Kevin Capital, who believes that DOGE is now at the perfect buying moment, before the price really surges.
What does market sentiment say?
In his analysis, Kevin noticed that Dogecoin is still trying to form a successful bullish test of a macro falling wedge. This happens after completing a typical 60% correction of a bull market.
Thus, if this level is successfully retested, DOGE will rise to a local high, surpassing the $0.13 resistance.
Historically, the last time Dogecoin broke out of this channel, the price surged to an all-time high in 2021. In fact, even the breakout in 2024 saw DOGE surge to its yearly high.
Therefore, based on this analogy, a successful retest and breakout would push memecoin price to new highs. At least yearly.
What does the DOGE price chart say?
While the above comments are positive, it is important to determine what the market fundamentals are saying.
For example, Dogecoin's buy/sell ratio, a metric that measures buy and sell volume, remains above 1 on the 4-hour chart.
At press time, the long/short ratio was 1.07. This suggests that long buyers are in control, with many investors anticipating a rise in prices.
Additionally, Dogecoin's Spot Netflow has remained negative for the past two weeks, meaning investors are withdrawing their DOGE tokens from exchanges to private wallets.
Maintaining this price level for a long period of time will lead to a shortage of supply, resulting in high demand and less supply – Pushing prices up.
Finally, DOGE Options volume spiked 118.21% to $120.64 million. Such an increase typically brings more traders into the market – a sign of increased market activity.
Therefore, an increase in Call Option volume implies that more investors are bullish and expect prices to move higher.
Can Dogecoin Recover?
According to AMBCrypto analysis, DOGE has faced multiple rejections at the $0.130 resistance level. As memecoin is currently experiencing positive market sentiment, it could be well positioned to post further gains on the price chart.
Currently, its price is stuck in a consolidation range between $0.1 and $0.13. If it breaks above $0.13, DOGE will reach a 3-month high of $0.14. If it breaks below $0.1, memecoin will fall below $0.1.
