- DOGE might be testing the support of a bullish pattern.
- A fresh bull rally can push DOGE towards its ATH.
Dogecoin [DOGE] didn’t move in investors’ interest over the last 24 hours as its price dropped. However, investors shouldn’t lose hope yet, as this might be the calm before a storm. To be precise, this latest correction might just be a retest of a key support.
Dogecoin breaks out of a pattern
Dogecoin bears dominated in the last 24 hours by pushing the memecoin’s price down by more than 5%. With the latest correction, DOGE was priced at $0.443 with a market capitalization of over $65.3 billion.
The price drop also had a negative impact on the world’s largest memecoin’s on-chain metrics. For instance, its weighted sentiment declined — a sign of rising bearish sentiment.
DOGE’s velocity dropped, meaning that the memecon was used less often in transactions within a set timeframe. Additionally, its MVRV ratio also plummeted and dropped to 11.58%.
Source: Santiment
However, there was more meat to this story, as AMBCrypto’s analysis found that DOGE successfully broke above a bullish symmetrical triangle pattern.
The pattern emerged in November and since then DOGE consolidated inside it, only to breakout on the 8th of December.
The recent price drop might just be a test of the upper trend line support of the pattern. If Dogecoin manages to test the support, then it might soon kickstart a fresh bull rally soon.
Source: TradingView
DOGE’s upcoming targets
Though the latest price decline might be a test of the support, things might get worse for DOGE. Coinglass’ data revealed that Dogecoin’s long-short ratio declined sharply in the 24-hour timeframe.
This meant that there were more short positions in the market than long positions, which indicated rising bearish sentiment in the market. Additionally, Dogecoin’s open interest remained high, hinting that the chances of the ongoing precise trend continuing are high.
Source: Coinglass
However, a few of the other metrics looked optimistic for the memecoin. For example, at the time of writing, DOGE’s fear and greed index had a value of 37%, meaning that the market was in a “fear” phase.
Whenever the metric reaches this level, it indicates that there are chances of a bullish trend reversal soon. If a bullish reversal happens, then it will be crucial for DOGE to go above the $0.46 resistance.
Read Dogecoin [DOGE] Price Prediction 2024-2025
A successful rise above that could push the coin towards its all-time high.
Moreover, if an altcoin season arrives, DOGE might as well reach a new ATH in the coming weeks. Nonetheless, if the bears continue to lead, then DOGE might drop to $0.36 again.
Source: TradingView
