Today the cryptocurrency market is all waving mixed signals where the main cryptocurrencies like Bitcoin, Ethereum, and BNB among a few others are trying hard to wash out the bear cycle. On the other hand, most other altcoins like Tether, Solana, XRP, and Dogecoin among others are stuck in a bear control.
However, if we talk about the meme king, Dogecoin, the DOGE price is having a tough time breaking out of the bullish pattern though the currency saw a decent rally in a week.
Dogecoin To See A Bull Trend!
At the press time, Dogecoin is changing hands at $0.1402 after sliding by 2.35% over the last 24hrs. The meme token approximately lost 85% of its value when the currency saw a price decline from its all-time high at $0.740 to $0.109 and this happened in less than a year.
This Price action of Dogecoin has formed three peculiar lower highs and lower lows and when these are connected with trend lines, it forms a falling wedge pattern.
It was on April 26th that the meme currency surpassed its upper trend line around $0.139 in terms of the daily time frame and if this gets validated on the weekly chart it will point towards the uptrend.
The next thing that will confirm Dogecoin’s bull run if the altcoin manages to take over $0.159 resistance as a support zone. If this happens, investors can start DOGE accumulation and could drive the trend that will retest $0.235 target.
On-Chain Data Hints Bullish Rally For DOGE Price
To support the Dogecoin price action leading towards the north is the 365-day Market Value to Realized Value (MVRV) model. This model is the one that is used to measure investors’ average profit/loss who purchased DOGE tokens in the last year.
If the 365-day Market Value to Realized Value (MVRV) falls between 10% to 15% then this shows that the short-term holders are at loss. Also, this is the spot where long-term holders pop in to accumulate forming local bottoms. Hence, this range is known as the opportunity zone.
Interestingly, the 365-day MVRV for Dogecoin is fluttering around -38% indicating that there is an opportunity for trend reversal also falling in line with the technical outlook.
Though there is a bullish outlook set for Dogecoin, if Bitcoin experiences a crash, the price action will drag the whole crypto market including DOGE.