- Dogecoin price has appreciated by over 20% in the last seven days
- Some market indicators suggest a short-term correction
Dogecoin (DOGE) defied all odds last week with her impressive chart performance. But that’s not all, as some signs seemed to suggest that this could well be the start of another massive bull rally.
In fact, the latest analysis revealed a bullish trend, which can push the price of DOGE much higher.
Dogecoin awaits a major breakthrough
Dogecoin bulls clearly dominated the market last week as the memecoin price appreciated by over 20% over the past seven days. In the last 24 hours alone, the price of DOGE jumped 4%. At press time, the world’s largest memecoin was trading at $0.1622.
AMBCrypto’s examination of IntoTheBlock data found that after the aforementioned surge, 5.34 million DOGE addresses were profitable. This number represented 84% of the total number of Dogecoin addresses.
Source: In the block
Amidst all this, Ali, a popular crypto analyst, shared a tweet highlighting a bullish pattern on Dogecoin’s chart. According to the same, the price of DOGE increased sharply a few days ago. Following this, the DOGE price recorded a slight correction.
However, this helped form a bull flag pattern. At press time, DOGE was on track as it appeared to be approaching the upper limit of the pattern. A break above this flag could push DOGE to $0.209 in the coming weeks.
Source:
Interestingly, Elon Musk also played a major role in DOGE’s latest pump, which has happened several times in the past.
AMBCrypto already had reported how Musk’s X post included a Dogecoin image. This could have sparked bullish sentiments, which would have caused the price of memecoin to rise sharply.
Will this upward trend continue?
Since DOGE’s recent performance has been bullish, AMBCrypto checked the memecoin’s on-chain data to know the chances of Dogecoin maintaining its rally. According to Santiment, DOGE’s MVRV ratio has fallen after peaking on October 29.
Likewise, the speed of DOGE has also decreased, meaning that Dogecoin has been used less often in transactions over a period of time. Both of these metrics suggest that DOGE could see a correction while consolidating into a bull flag pattern.
Source: Santiment
Finally, we evaluated the daily chart of memecoin to better understand whether a price correction is imminent or whether it will continue to rise.
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We noticed that Dogecoin’s Money Flow Index (MFI) recorded a sharp decline, hinting at a decline in prices. In the event of a correction, DOGE could fall to its support near its 20-day SMA, from where the bulls will have the opportunity to regain control.
Source: TradingView