- Market sentiment around the memecoin improved in the last few days.
- Buying pressure on Dogecoin also increased.
After days of price corrections, the market condition changed as several cryptos, including Dogecoin [DOGE], registered price hikes. Meanwhile, a bullish divergence appeared on the memecoin’s chart, hinting at a continued rally.
Let’s have a look at the levels DOGE might target in case the bull rally continues.
Dogecoin’s latest bullish move
CoinMarketCap’s data revealed that the bulls took over in the last 24 hours as Dogecoin’s value surged by more than 5%. At the time of writing, DOGE was trading at $0.09944 with a market capitalization of over $14.5 billion, making it the 8th largest crypto.
While that happened, Ali, a popular crypto analyst, posted a tweet revealing a bullish divergence pattern that appeared on DOGE’s Relative Strength Index (RSI) chart.
If the divergence is to be believed, then investors might witness DOGE pump in the coming days. Apart from that, the TD sequential also flagged a buy signal on Dogecoin’s 4-hour chart, further hinting at a bull rally.
Source: X
AMBCrypt then planned to have a closer look at Dogecoin’s on-chain data to find out the odds of the memecoin continuing its null rally.
DOGE’s upcoming targets
As per our analysis of IntoTheBlock’s data, investors actually increased accumulation as the buy signal flashed. This was evident from its negative exchange netflow.
A negative exchange netflow means that buying pressure on an asset is high, which often results in price increases.
Source: IntoTheBlock
Apart from this, our analysis of Santiment’s data revealed that Dogecoin’s weighted sentiment improved, meaning that bullish sentiment around the memecoin increased.
Another bullish signal was the MVRV ratio, which increased. Additionally, whale activity around DOGE also remained high, which was evident from its stable whale transaction count.
Source: Santiment
The memecoin at press time was testing a resistance. In case of a successful breakout, Dogecoin might net target $0.11. A jump above that mark would allow DOGE to move towards $0.13 this week.
The Chaikin Money Flow (CMF) registered an uptick, suggesting that it was likely for DOGE to break above the resistance. However, the Money Flow Index (MFI) was concerning as it moved in the opposite direction.
Source: TradingView
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In the short term, however, DOGE’s liquidation will rise sharply near $0.10. Generally, a rise in liquidation results in price corrections.
Therefore, it’ll be crucial for Dogecoin to go above that level in order to sustain its bull rally. Nonetheless, if the trend changes and the bears take over, then DOGE might drop to $0.096.
Source: Hyblock Capital
