- Market sentiment around Dogecoin remained bearish.
- However, indicators suggest that prices will rise soon.
After a week of multiple revisions, Dogecoin [DOGE] It’s finally back on track. Meanwhile, the latest data reveals that DOGE is following a historical trend that has previously delivered massive bull runs. Let’s take a closer look at what’s going on.
Dogecoin mimics past trends
CoinMarketCap data DOGE has been found to have corrected by over 3% in the past seven days, however, things have improved for the meme coin as its price has increased slightly in the past 24 hours.
At the time of writing, Dogecoin had a market cap of over $23 billion and was trading at $0.1603.
meanwhile, analysis It revealed that DOGE has entered a pattern it previously followed in 2016 and 2020.
In the two previous instances, this pattern marked the start of a bull market, and in fact, both bull markets resulted in DOGE reaching new all-time highs.
Therefore, if history repeats itself and DOGE tests the pattern, investors could witness DOGE reach new highs in the coming weeks and months.
What can we expect in the short term?
While Dogecoin’s long-term outlook is bright, past trends have re-emerged, so AMBCrypto looked at the metrics to get a better understanding of what to expect in the short term.
Data analysis from Santiment revealed that DOGE trading volume dropped significantly last week. Another bearish indicator was velocity, which also decreased.
This means that DOGE has been used less frequently within the set time frame. That said, the MVRV ratio for meme coins has improved slightly, which can be attributed to the rise in meme coins over the past 24 hours.
Source: Santiment
Despite the recent price rally, market sentiment around meme coins remains bearish, as evidenced by the significant drop in meme coin weighted sentiment.
It is also interesting to note that Dogecoin’s social volume has declined in the past week, reflecting a decline in popularity for the world’s largest meme coin.
Source: Santiment
Next, we analyzed the meme coin’s technical indicators, and we noticed that DOGE’s Chaikin Money Flow (CMF) is spiking from neutral levels.
The Relative Strength Index (RSI) also showed a similar trend and turned upwards, suggesting that a price upswing is likely.
Source: TradingView
Is your portfolio green? Dogecoin Profit Calculator
Data analysis by Hyblock Capital revealed that if DOGE turns bullish, it may first reach $0.167 as liquidations increase at that level.
A successful breakout above this level could see DOGE reach $0.175 in the coming days.
Source: Highblock Capital
