Although Dogecoin has failed to break out of the $0.13 to $0.16 price range, several analysts remain bullish on Dogecoin.
However, others expected it to drop, considering the significant drop in its 24-hour active addresses and its liquidity issues.
Dogecoin (DOGE) remains one of the biggest winners in the current market rally, up 2% in the past 24 hours, 10.7% in the past 7 days, and 96% in the past 90 days. Interestingly, the 24-hour trading volume and market capitalization are in sync with the current price action, up 44% and 2% respectively.
Ali Martinez, a well-known cryptocurrency analyst, said that the asset’s movement will not slow down anytime soon as it is gathering momentum to retest its multi-month high of $0.2 from the current $0.167.
Martinez defends his prediction
To support his argument, Martinez shared a chart showing a breakout from a descending triangle pattern. Following this prediction, the asset began a massive correction, which the analyst explained was a key move to retest the predicted resistance level. Martinez believes that the current formation is mimicking the previous cycle, “History doesn’t repeat itself, but it often rhymes!!”
Now, in 2024,#DOGEhas broken out of the descending triangle again! It is currently experiencing a 47% price correction, very similar to previous cycles, which could spark the next $DOGE bull run!
In a recent forecast reviewed by Crypto News Flash, Martinez revealed a rare pattern formation that mimics the market situation in 2017. At that time, Doge fell 40% and immediately surged 1,000%. In 2021, Dogecoin also surged 12,000% after a 56% plunge. Martinez said that a breakout in 2024 could take the price into the $1 area after breaking through multiple resistance levels.
Indicators and other analysts support Dogecoin’s bullish outlook
A brief study by CNF shows that Dogecoin is enjoying bullish sentiment, with its open interest surging 23%. As of May 21, Dogecoin’s open interest was $970.77 million. Moreover, open interest increased by 200% to nearly $4 billion. It is worth noting that open interest represents the number of open derivative contracts. Technically, it provides insight into the sentiment of market participants and potential future price movements.
Market data also shows that the asset’s relative strength index (RSI) is currently around 56, indicating moderate buying interest in Dogecoin. Meanwhile, the moving average convergence divergence (MACD) shows a reading of 0.0009.
Echoing previous predictions, Crypto Daily Trade Signals analysis shows that Dogecoin’s price action is forming a symmetrical triangle pattern. This means that the asset is showing signs of breaking through its current resistance levels of $0.16980 and $0.18440.
Similarly, another analyst named World of Charts said that if the meme coin breaks out, its price could double to $0.3. For cryptocurrency analyst Kaleo, the trend of GameStop’s stock price shows that the asset is “long overdue for a major rally.”
Contrary to these bullish predictions, one analyst believes that Dogecoin could be on a bearish trajectory due to the recent dumping of $18.55 million worth of Dogecoin assets by an unknown tycoon.
According to the analyst, Dogecoin has been struggling recently, with prices hovering between $0.13 and $0.16 without any breakthrough. On top of that, he believes that liquidity issues remain, with the asset's liquidity level currently around $0.15 and $0.16. Finally, the plight of Dogecoin holders has also been highlighted, with 24-hour active addresses falling from 250,000 in February to 54,600 on May 18.
If you also want to dig deep into the cryptocurrency circle and maximize your investment returns, but you can't recognize the market, then no matter how good the opportunity is, it has nothing to do with you. Follow me on the homepage, and I will share spot codes, bull market layout strategies, and 100-fold potential coins for free every day!
