- Dogecoin shows signs of recovery, trading up by 6.7% over the past week.
- An analyst predicted a major bull rally, citing historical trendline support breakdowns as indicators.
Dogecoin [DOGE], the meme-inspired cryptocurrency, has demonstrated a notable recovery after a recent dip, suggesting potential bullish momentum in the crypto markets.
As of press time, Dogecoin traded at $0.1057, marking a 6.7% increase over the past week.
This resurgence from a low of $0.82 on the 5th of August reflected a growing investor interest and a possible shift in market dynamics.
Notably, Dogecoin has seen a modest 1.2% increase in the past 24 hours, stabilizing above the $0.10 mark, which could signify a foundational support level for the asset.
Technical insights on Dogecoin
Amid the recent price fluctuations, renowned cryptocurrency analyst ‘Trader Tardigrade’ has provided a compelling technical analysis on Dogecoin.
According to Tardigrade, Dogecoin’s chart was exhibiting a critical breakdown of its monthly trendline support—a pattern that historically precedes significant rallies.
This type of movement in the charts was suggestive of a cyclical behavior, where Dogecoin, after breaching a key support level, built momentum for a substantial upward movement.
Tardigrade emphasized that similar patterns were observed in the past, where such breakdowns led to vigorous bull runs, indicating that Dogecoin might be on the cusp of entering another major bullish phase.
Source: Trader Tardigrade on X
This setup, according to Tardigrade, prepares Dogecoin for a potential explosive movement upwards, akin to those seen in previous cycles where substantial gains followed similar breakdowns.
DOGE’s market sentiment
Analyzing behind-the-scenes activities offered further insights into Dogecoin’s market behavior. Data from IntoTheBlock indicated fluctuating but noteworthy activity among Dogecoin whales (large-scale holders).
A significant spike on the 5th of August saw over 1,500 large transactions, indicating increased whale activity that coincided with the beginning of Dogecoin’s price recovery.
Source: IntoTheBlock
Although this activity diminished to below 100 transactions by the 12th of August, it rebounded significantly today, surpassing 600 transactions.
This resurgence in whale activity could signal a growing confidence among major holders, potentially stabilizing the price further.
Moreover, the current profitability among Dogecoin holders stands out, especially when compared to other memecoins.
Roughly 73% of Dogecoin holders were in profit at press time, far exceeding the profitability rates of competitors like Shiba Inu [SHIB] and Pepe [PEPE], where less than 60% of holders were in profit.
Source: IntoTheBlock
Additionally, recent changes in Dogecoin’s Open Interest provided a mixed signal regarding market expectations.
Read Dogecoin’s [DOGE] Price Prediction 2024-2025
While Open Interest has risen by 2.38% to $485.62 million, indicating a growing market engagement, the Open Interest volume has seen a substantial decrease of 55%, standing at $651.52 million at press time.
Source: Coinglass
This divergence might imply that while new positions are being opened, the overall market is cautious, possibly awaiting clearer signals before committing more significantly.
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