Over the past month, Dogecoin [DOGE] has seen multiple price spikes on its charts, sparking optimism about a potential memecoin-fueled bull run.
In fact, memecoin is currently leading major cryptocurrencies on its weekly chart. At the time of writing, for example, Dogecoin is trading at $0.143. This marks a 30% increase over the past week, with DOGE also posting gains on its daily and monthly charts.
As expected, the recent price action has analysts talking about memecoinâs trajectory. Some analysts, such as Ali Martinez and Kevin Capital, believe that the current market trend is likely to continue.
Market psychology
For example, according to Martinez, DOGE's TD sequential signal is currently flashing "Sell" on the daily chart.
This means that memecoin is likely to see a short-term pullback before attempting another uptrend. Typically, when investors start selling to take profits, this leads to more selling pressure, pushing the price down.
However, the analyst believes that the uptrend will continue soon.
However, thatâs not all as according to Kevin, DOGE is approaching a Golden Cross on the weekly chart. Based on this analysis, Dogecoin has maintained a falling wedge for the past 6 months, which is often a sign of a bullish reversal.
With DOGE set to make a golden cross for the first time in four years, accompanied by a falling wedge, memecoin is likely to see a parabolic rally.
Historically, a golden cross has meant a strong bull run for memecoin. For example, the last time this happened was in January 2021. This saw the price of Dogecoin skyrocket from a low of $0.007 to $0.737 in four months - a level that still holds its ATH. This marked a 10,428.57% rally.
Therefore, if history is anything to go by, and the analysis holds true, DOGE could see another historic rally. With the latest price action taking DOGE to a 4-month high, such a parabolic rally would push the memecoin to the highly coveted level of around $1.
What does memecoin chart say?
The above analysis suggests a promising outlook for Dogecoin. However, it is important to determine what other market indicators may also suggest.
First, Dogecoin's long/short ratio is 1.03% at press time. A ratio above 1 means that most investors are holding long positions, thus making long positions dominant in the market. Simply put, this implies that most investors are bullish.
Additionally, this bullish sentiment is further evidenced by the increase in large holder outflows. According to IntoTheBlock, large Dogecoin holder outflows have increased from 42.71 million to 1.12 billion.
This marks a massive increase of 2,522.34% over the past week. Such an increase means that large holders are bullish and are expecting further gains.
Finally, Dogecoin Open Interest has been steadily increasing over the past week. This is another sign that investors are constantly opening new positions, while existing investors are holding on to their positions.
What's Next for Dogecoin?
Simply put, current market conditions are favorable and could help DOGE continue to rise on the charts. If these conditions hold, the market's most popular memecoin could reach a five-month high of $0.174.