Altcoin
How Dogecoin’s 30% pump triggered a key market structure shift to the upside
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| Last updated: July 11th, 2023
Dogecoin’s price is hinting that it has begun its journey to the upside. The recent rally has got investors speculating if it could actually trigger a bull run for the crypto markets. It would not be surprising as DOGE was one of the first meme coins to pump before a full-blown bull run began in 2020.
Key level investors should keep an eye on
From 14 to 24 March, Dogecoin price rallied 30% and is currently hovering around $0.14. The uptrend was a result of the falling wedge pattern that began on 28 September, 2021. Since this point, DOGE has set up four lower highs and five lower lows.
Connecting these swing points using trend lines, results in a falling wedge formation, which forecasts a 34% uptrend. The target is obtained by measuring the distance between the first swing high and low to the breakout point at $0.133.
On 23 March, DOGE breached the upper trend line of the falling wedge, indicating a bullish breakout. Since then Dogecoin bulls have been running wild.
A daily close above $0.161 will flip the vital resistance barrier into a support level. This development is crucial in triggering a bull run since it acted as a key support level during the crash in 2021.
Market participants need to keep a close eye on this barrier as it could trigger an exponential uptrend for not just Dogecoin but the entire ecosystem.
DOGE Perpetual Futures | Source: Tradingview
Supporting this bullish outlook for DOGE is the recent uptick in on-chain volume from 500 million to 1.73 billion in less than 24 hours. This 3.4 times increase in the volume suggests that investors, both retail and whales, are interacting with the Dogecoin blockchain and are interested in DOGE at the current price levels.
Moreover, the surge in volume has also caused the 7-day moving average to move above the 200-day moving average, creating a bullish crossover.
DOGE on-chain volume | Source: Santiment
All in all, the outlook for Dogecoin price looks bullish from both technical and on-chain metrics. A decisive move above $0.161 will seal the deal for buyers and indicate the start of an uptrend. However, failure to do so could result in further consolidation.
Additionally, a daily candlestick close below $0.124 will invalidate the bullish thesis for DOGE and trigger a potential crash to $0.07.
