Analysts predict a potential Dogecoin rally based on historical price performance, noting that significant gains often follow breakouts from symmetrical triangle patterns.
DOGE has seen a surge in transactions, with 782,000 recorded in the past week.
After a strong rally last week, the Dogecoin (DOGE) price has come under severe selling pressure and is currently trading 11% down at $0.1056 with a market cap of $15.4 billion. During the month of September, Dogecoin registered strong monthly gains with even Bitcoin outperforming the market expectations.
Despite this correction, the DOGE price is still trading 9% up on the 30-day chart with analysts expecting further upside. One crypto analyst suggests that the upcoming Dogecoin rally could come on the heels of three key factors.
Comparing historical DOGE price performances with the current trend, the analyst believes that whenever the DOGE price breaks out from the symmetrical triangle pattern, it will make considerable gains. Interestingly, the meme coin has already signaled this breakout in the past week, confirming that an uptrend is on the horizon.
The analyst also noted that Dogecoin tends to experience significant percentage gains in each cycle. For example, in the first cycle, Dogecoin recorded a remarkable increase of 9,363%, followed by an astonishing surge of 29,626% in the second cycle.
This shows that Dogecoin has seen more increase in comparison to the previous cycle. Thus, if this repeats again, we could see even more gains during the next cycle. The analyst also mentioned three major factors that could push the DOGe price even higher.
DOGE is seeing increased adoption with consistent growth in transactions that could lead to higher demand.
The DOGE is affordable as it has a lower price in comparison to other altcoins of its size, which can potentially attract more customers.
Improvements such as quicker transaction processing and enhanced security could significantly increase Dogecoinâs utility and attractiveness.
Dogecoin On-chain Metrics and Charts
Dogecoin has experienced a significant increase in transactions, surpassing all other memecoins. According to IntoTheBlock, DOGE recorded an exponential rise in transactions over the past week.
During this period, the memecoin achieved 782,000 transactions, accounting for 74.45% of all memecoin transactions. This surge indicates a growing number of active users and heightened engagement with the network, suggesting improving fundamentals, per the CNF report.
Furthermore, during the past week, several investors initiated long positions for DOGE. This is as per the positive funding rate aggregated by the exchange over the past seven days. This shows that investors who are going long on DOGE are willing to pay a premium while showing confidence in the memecoin. Furthermore, per the CNF report, the Dogecoin active addresses have jumped by a staggering 72%.
Additionally, Dogecoin has also experienced positive net flows from investors over the past six days. This surge in the net flow among large holders shows accumulation by significant investors, while a decline suggests reduced positions or selling.
