Dogecoin (DOGE) has shown strong bullish momentum over the past week, with its price surging by double digits. What’s more exciting is that it could see even more gains in the coming weeks as it approaches key resistance levels.
CoinMarketCap data shows that DOGE prices have risen by more than 15% in the past seven days and have soared by more than 4% in the past 24 hours. At press time, DOGE is trading at $0.1400 with a market value of more than $19 billion.
Thanks to strong price action, Dogecoin’s social popularity has surged, reflecting its increased popularity. Surprisingly, despite the recent price gains, Dogecoin’s weighted sentiment remains in negative territory, indicating that bearish sentiment dominates the market.
However, the market sentiment towards DOGE may be about to change. A recent tweet from well-known cryptocurrency analyst World Of Charts highlighted a bullish development. According to the tweet, a bullish falling wedge pattern has appeared on Dogecoin’s chart. The price of DOGE has been consolidating inside the pattern since it formed in March.
At press time, DOGE is approaching the resistance level of the descending wedge pattern. Once it breaks out, DOGE could start a new bull run. Specifically, a breakout could lead to a 66% price increase in the coming weeks. Therefore, AMBCrypto plans to check DOGE’s indicators to watch for a potential breakout.
Can DOGE maintain its bullish momentum?
AMBCrypto's analysis of Coinglass data revealed a bearish indicator. For example, Dogecoin's long-short ratio fell. The decline in this indicator means that there are more short positions than long positions in the market, indicating that bearish sentiment dominates the market.
Moreover, the funding rate of Dogecoin has also increased significantly. Typically, prices tend to move in the opposite direction of the funding rate. Therefore, DOGE may turn bearish in the coming days, limiting its breakout from the descending wedge pattern.
Nonetheless, its MVRV ratio rose last week, which can be seen as a bullish sign.
Afterwards, we plan to examine Dogecoin’s daily chart to get a better idea of where the price is headed.
Interestingly, the indicators are showing a bullish bias, suggesting the possibility of a successful breakout of the pattern.
The MACD shows a bullish edge in the market. Both its Relative Strength Index (RSI) and Money Flow Index (MFI) have risen sharply, suggesting that prices will continue to rise.
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