đCould Dogecoin reach $1â A look back at the 2021 rally might hold the answer!đ€Ż
Dogecoin has seen a strong upswing over the past week, hiking by 30% on the charts.
Dogecoin's price has surged by 30% over the past week, sparking discussions among analysts about the possibility of another parabolic rally similar to what occurred in 2021.
In the last month, DOGE has shown significant upward movement, reigniting optimism for a memecoin-driven resurgence. Currently, Dogecoin is leading the major cryptocurrencies on the weekly charts, trading at $0.143, reflecting that impressive 30% increase.
This recent price activity has captured the attention of analysts, including Ali Martinez and Kevin Capital, who suggest that the current trend may persist. Martinez noted that the TD sequential signal for DOGE is indicating a "Sell" on the daily charts. This suggests a potential short-term pullback could occur as investors take profits, which might increase selling pressure and lower prices temporarily.
Despite this, Martinez remains optimistic that an upward trend will resume shortly after the pullback. Additionally, Kevin highlights that DOGE is approaching a Golden Cross on the weekly charts. He points out that Dogecoin has been forming a falling wedge pattern over the past six months, typically signaling a bullish reversal.
With the prospect of a Golden Cross for the first time in four years alongside this falling wedge formation, there is strong potential for Dogecoin to experience a significant rally.
Historically, a golden cross means a massive rally for the memecoin. For example, the last time this happened was in January 2021. This saw Dogecoinâs price skyrocket from a low of $0.007 to $0.737 within four months â A level that still remains its ATH. This marked a 10,428.57% rally.
Therefore, if history is something to go by, and the analysis holds true, DOGE will likely see another historical surge. With its latest price action putting DOGE at a 4-month high, such a parabolic rally would push the memecoin to the highly coveted levels around $1.
đ¶What does the memecoinâs chart say?
The aforementioned analysis alludes to a promising outlook for Dogecoin. However, itâs essential to determine what other market indicators might be suggesting too.
For starters, Dogecoinâs long/short ratio was 1.03% at press time. A ratio above 1 means that most investors are taking long positions, thus making long positions dominant in the market. Simply put, this implies that most investors are bullish.
Additionally, this bullish sentiment is further evidenced by a surge in large holders inflows. According to IntoTheBlock, Dogecoinâs large holders inflows have surged from 42.71 million to 1.12 billion.
This marked a massive hike of 2,522.34% over the past week. Such an uptick means that large holders are bullish and are anticipating further gains.
Finally, Dogecoinâs Open Interest has seen a sustained uptick over the past week. This is another sign that investors are continually opening new positions, while the existing ones hold theirs.
đžWhat next for Dogecoin?
Simply put, the prevailing market conditions are favorable and could set DOGE for further gains on the price charts.
If these conditions are maintained, the marketâs favourite memecoin will hit a 5-month high of $0.174.
#MemeCoinTrending