CoinWorld reported:
In the past 24 hours, Broken Dog has surged 3.05% on the charts.
At the time of writing, Memecoin is trapped in a consolidation range between $0.1 and $0.13
Dogecoin [DOGE], the world’s largest memecoin by market cap, has appreciated significantly 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 up on both the weekly and monthly charts.
However, despite Dogecoin’s continued rise in value, the memecoin is still nearly 85% below its 2021 ATH of $0.73. At press time, the price is also 51.32% below its yearly high of $0.228.
Even so, many in the Dogecoin community remain optimistic, especially given the cryptocurrency’s recent bullish behavior. Current market conditions have also led analysts to bet on a potential bull run driven by the memecoin.
One of those analysts is Kevin Capital who said that DOGE is currently at a perfect buying opportunity before it really surges higher.
What does market sentiment say?
In his analysis, Kevin observed that Dogecoin is still attempting a successful bullish retest of the macro falling wedge. This is after completing a typical bull market 60% correction.
Therefore, a successful retest of this level will see DOGE rise to local highs above the $0.13 resistance level.
Historically, the last time Dogecoin broke out of this channel, it reached its ATH in 2021. In fact, even in the 2024 breakout, DOGE surged to yearly highs.
So, based on this analogy, a successful retest and breakout will push the price of the memecoin to new highs. At least once a year.
What does DOGE’s price chart show?
While the above observations are positive, it is crucial to identify market fundamentals.
For example, Dogecoin’s long/short ratio, an indicator that looks at the volume of buys and sells by takers, remains above 1 on the 4-hour chart.
At press time, the long/short ratio was 1.07. This suggests that bull buyers have been dominant and many investors expect prices to climb higher.
Furthermore, Dogecoin’s Spot Netflow has remained negative for the past two weeks, which means that investors are withdrawing their DOGE tokens from exchanges to private wallets.
Sustained growth at this level will lead to a supply crunch, where demand is high and supply is low, pushing prices higher.
Finally, DOGE options volume surged 118.21% to $120.64 million. Such a surge usually means that many traders are entering the market - a sign of rising market activity.
Therefore, rising call option volume means that many investors are bullish and expect prices to rise further.
Can Dogecoin Finally Rebound?
According to the analysis of AMBCrypto, DOGE has faced multiple rejections at the $0.130 resistance level. As the memecoin is now experiencing positive market sentiment, it could be well positioned on the price chart for more gains.
Currently, its price is hovering in a consolidation range of $0.1 to $0.13. A breakout above $0.13 will allow DOGE to hit a 3-month high of $0.14. A breakdown will see the memecoin fall below $0.1.
