NAIROBI (CoinChapter.com) —Dogecoin (DOGE) surged last week, driven by Elon Musk’s influence and growing interest in meme coins. This rise has traders questioning if DOGE can match its 2020-2021 rally, when Musk’s support sent it soaring. Analysts now see potential for another sharp rise, similar to its past 16,000% increase.
DOGE/USD 1-day price chart. Source: CoinMarketCap
At press time, Dogecoin traded at $0.1471, with a 31.20% increase over the past seven days and a 2.78% rise in the last 24 hours.
“DOGE Season” Incoming? Falling Wedge Signals a Breakout
Crypto analyst Trader Tardigrade recently pointed out a potential bullish pattern forming on Dogecoin’s monthly chart. The Falling Wedge pattern, which typically suggests a price breakout, could explain the recent price surge. Tardigrade labeled this development the start of “DOGE season” and predicted more gains if the pattern continues to hold.
DOGE/USD 1-day price chart. Source: Trader Tardigrade
Meanwhile, Crypto analyst Dima James Potts highlighted that Dogecoin’s price chart resembles its pattern during the 2021 breakout. According to Potts, Dogecoin may be on the verge of another parabolic rally. He points out that the coin has followed a consistent three-year cycle, with its price increasing by 1.5 times in 2016 and 2.5 times in 2020. If this pattern holds, Dogecoin could reach $0.31 by the end of 2024.
DOGE/USD 1-week chart. Source: Dima James Potts
Potts further speculated that if the rally continues into 2025, DOGE could hit $10, though this projection is highly dependent on market conditions. Potts’ forecast draws from Dogecoin’s history, where it saw gains of 9,000% in 2017 and 18,000% in 2021.
Bullish Sentiment Grows as Large Holders Jump In
Beyond technical analysis, the overall market sentiment for Dogecoin is turning increasingly bullish. According to Coinglass, Dogecoin’s long/short ratio is currently at 1.02%, meaning that most investors are taking long positions.
DOGE Long/Short Ratio Chart. Source: Coinglass
Moreover, data from IntoTheBlock reveals a sharp surge in large holder inflows, skyrocketing by 2,522.34% in the past week, from 42.71 million to 1.12 billion.
Open Interest Surges to $1.05B, TVL Hits a Three-Month High
Another crucial metric supporting Dogecoin’s bullish outlook is its Open Interest, which has surged to $1.05 billion.
Dogecoin Total Value locked (TVL) Surge. Source: DefiLlama
In addition, Dogecoin’s Total Value Locked (TVL) reached a three-month high of $4.82 million, a sign that more participants are engaging with the Dogecoin ecosystem.
While the future remains uncertain, the technical and market data suggest that Dogecoin may have more room to grow. Whether it can match its extraordinary 2021 rally remains to be seen, but investors and analysts will be watching closely in the coming months.
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