đđđ«Two reasons why Dogecoin (DOGE) could soar 70% âŒ
Dogecoin (DOGE) recently broke out of a falling wedge pattern it had been trading in for months. This kind of breakout usually signals a potential upside reversal, signaling a continued uptrend.
When a falling wedge resolves, price tends to rise to the height of the maximum distance between the upper and lower trend lines. For Dogecoin, this could mean a significant price increase, by as much as 72%. So, should Dogecoin holders expect a rally like this?
Dogecoinâs positive funding rate indicates that its holdersâ optimism for a continued rally is growing. At the time of writing, Dogecoin is trading at $0.11, with prices up more than 10% in the past week.
The coin has maintained a positive funding rate since September 17, indicating continued strong demand for long positions. This is a bullish sign because it creates a self-reinforcing cycle where more traders enter the market because they believe the coinâs price will riseâa sentiment that ultimately drives the price even higher. As of press time, Dogecoinâs funding rate is 0.01%.
Dogecoinâs Aroon Indicator, which measures trend strength, also supports the possibility of a continued uptrend. The Aroon Up Line currently stands at 100%, indicating that Dogecoin is in a strong uptrend and buying pressure is keeping the price near recent highs.
Traders view a 100% reading as a sign that the uptrend may continue, especially when the Aroon Down Line is low. Currently, Dogecoinâs Aron Down indicator is at 28.57%, indicating that there are no recent lows, reinforcing the strength of the current uptrend.
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