Bitrabo Editorial
The recent recovery of Bitcoin above $71,000 has sparked optimism in the cryptocurrency market, leading to Dogecoin’s price breaking the $0.16 resistance level. A notable analyst has identified a bullish triangle pattern forming in Dogecoin, indicating a potential upward trajectory for the meme coin.
Analysis of Dogecoin’s Triangle Pattern
In a post on TradingView, crypto analyst Lingrid highlighted the bullish triangle pattern visible in the Dogecoin chart. This pattern is historically favorable for price movements, with the market consolidating below the upper border of the triangle, signaling a potential price increase.
Lingrid outlined a crucial range zone just above $0.15 that played a significant role in forming the triangle pattern. This accumulation phase typically precedes price movements, which can either be bearish or bullish. In this instance, as indicated by the analyst, the consolidation beneath the upper border of the triangle suggests a bullish outlook for Dogecoin’s price.
Furthermore, Dogecoin has been establishing higher lows, indicating a sustained bullish trend. Lingrid predicts a potential bullish rally if the price breaks through the downward trendline and surpasses the range zone, targeting a resistance level of 0.17500.
Continued Bullish Momentum for DOGE
The current week has brought a bullish sentiment for Dogecoin, with a surge in investor interest evidenced by a notable spike in trading volume, up over 130% in the last week. The trading volume stands at almost $2 billion according to Coinmarketcap data, reflecting a substantial increase.
Moreover, there has been a noteworthy rise in Dogecoin’s open interest, reaching $921.4 million in the past 24 hours. This surge in open interest, the highest in a month, suggests growing confidence and sizable bets on Dogecoin’s price trajectory. Historically, such increases in open interest have correlated with price upticks, indicating a potential sustained rally in this case.
Currently, Dogecoin is trading at $0.164, up over 8% in the last 24 hours and exhibiting a remarkable 122% increase over the past year.