- DOGE’s network activity remained high throughout the last week.
- Most market indicators looked bearish on the memecoin.
Dogecoin [DOGE] bears have once again gained control of the memecoin’s price action by phishing the coin down. However, there was more to the story as the memecoin was on the verge of breaking out of a bullish pattern.
In case of a successful breakout, investors might expect DOGE to move towards $1.
Will Dogecoin breakout soon?
CoinMarketCap’s data revealed that the world’s largest memecoin’s value dropped by over 4% in the last seven days. This got even worse in the last 24 hours as the coin witnessed yet another 4% price drop.
At the time of writing, Dogecoin was trading at $0.09534 with a market capitalization of over $13.9 billion, making it the 8th largest crypto.
As per our look at IntoTheBlock’s data, 3.52 million DOGE addresses were in profit, which accounted for over 54% of total DOGE addresses.
In the meantime, World Of Charts, a popular crypto analyst, posted a tweet revealing a bullish pattern on DOGE’s chart. The bullish falling wedge pattern appeared on DOGE’s chart a few months ago, and since then, the coin’s price has been consolidating inside it.
At the time of writing, the coin was showing signs of a bullish breakout. In fact, if the pattern is to be believed, then a breakout might result in DOGE moving towards $1 in the coming weeks.
Source: X
The odds of DOGE breaking out
AMBCrypto then assessed the world’s largest memecoin’s on-chain data to better understand whether it will manage a bullish breakout. Our analysis of Santiment’s data revealed that Dogecoin’s MVRV ratio dropped last week, indicating a continued price drop.
However, the rest of the metrics looked optimistic. For example, whale transaction count remained high. Additionally, its daily active addresses were also stable, reflecting consistent traffic on the blockchain.
Source: Santiment
Apart from that, at the time of writing, DOGE’s fear and greed index had a value of 39%, meaning that the market was in a “fear” phase.
Whenever the metric reaches this level, it indicates that the chances of a price increase are high. We then took a look at DOGE’s daily chart to see what technical indicators suggested regarding a bullish breakout above the falling wedge pattern.
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As per our analysis, the Relative Strength Index (RSI) registered a downtick. The MACD also displayed a bearish crossover, indicating that it might take more time for DOGE to break above the bull pattern.
Nonetheless, the Chaikin Money Flow (CMF) remained bullish as it registered an uptick.
Source: TradingView
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