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- Dogecoin has recovered to $0. 12 recently, and thus, it anticipates bursting out of the division line created between its trading around $0. 16.
- The culmination of more buying than selling among investors is manifest in the swelling OI, a metric that permits foreseeing the markets and price trajectories.
Dogecoin (DOGE), the well-known meme-based digital currency, has experienced intense price movement recently, part of the dust storm that has swept the cryptocurrency market. However, Dogecoin has recently recovered to $0. 12, and thus, it anticipates bursting out of the division line created between its trading around $0. 16. Conversely, many traders were going for long contracts. This can be seen by looking at the upward movement in OI, which increased by around 200 million in just two days.
The culmination of more buying than selling among investors manifests in the swelling OI, a metric that permits foreseeing the markets and price trajectories. Although the price of Dogecoin has not yet exceeded the $0. 16 mark, investors are optimistic that the currency will appreciate once the number of long contracts with traders who placed them on the market increases. The positive funding rate reinforces this optimism; thus, investors prefer to take long positions over short ones.
Despite this recent development, Dogecoin is on the growth path. Dogecoin’s price movement action is such that it generates profit from most of the total supply of DOGE, and there is still space for future currency appreciation. Usually, disposed-of gains indicate that the stock may be overpriced, and the selling pressure may surface. Consequently, the current situation of Dogecoin’s market indicates that it is still far from the ultimate top, which means it can also increase its retail price.
Analyst Predicts Potential for Bull Run
The crypto analyst Ali Martinez’s forecast over the future of DOGE is bullish despite the obstacles. Martinez states that even if the retreat in the DOGE price happens right now, this still probably can be associated with significant DOGE bull runs in the economic background. Martinez draws a parallel between 2017 and 2021, indicating a drastic fall followed by a rapid increase. The price of DOGE has dropped by around 40% and 56% before reaching growth in price with peaks of almost 1,000% and 12,000%, respectively.
🧵 The ongoing #Dogecoin price correction is part of its usual behavior before massive bull runs! Let's dive in 👇
— Ali (@ali_charts) May 1, 2024
DOGE has formed a symmetric triangle pattern during its price resignation period. According to Martinez, the divergence that occurs, the -20% correction that mirrors the common cycles, could be a sign or precursor of the next bull run in DOGE. Last time, Martinez told me that DOGE could go into the consolidation phase. If the trend continues, it will probably reach the psychological barrier of $1.
Analysis and Projections
Additionally, crypto analyst Behdark is playing a key role in developing an interesting financial analysis of DOGE (Dogecoin) and asking for a big long-term bullish rally. Through this claim, a recovery after DOGE had dropped to below $0. 13 and soon reported back at around $0. 16.
Behdark suggests on TradingView that the Dogecoin price’s ability to stand at $0. 1 is an important condition of its bullish movement. Such a level of support, along with a prolonged correction, adds to the analyst’s conviction of the forthcoming bullish rally. In this regard, Behdark emphasizes historical repetition, recognizing the previous correction of 900 days and predicting that the current correction can be more than 500 days.
Behdark began Dogecoin’s bull rally in October 2023, when the price surpassed $0. 06. Although, since then, the market has displayed the fluctuations characteristic of such trends, the analyst expects the next upward trend. Currently, Dogecoin is trading at $0.158, showing a 5.37% decline over the 24-hours. With a market cap of $22.9 billion, it stands as the 8th largest cryptocurrency by market cap.