Analyst sets this condition for Dogecoin price to rally over 30%

As Dogecoin ($DOGE) price confirmed a renewed uptrend after rallying over 33% last week, Ali Martinez, a popular crypto market analyst, believes this dog-themed memecoin could rally more than 30% amid its bullish flag formation.

Martinez stated that Dogecoin price could rally towards $0.115, if it breaks above its bullish flag, a technical chart pattern that signals the continuation of an existing upward trend, in its 1 hour timeframe, according to an X post on August 28. With $DOGE price hovering around $0.866 on Friday, this analyst expects a 32.79% upside in the near future, if the upper border of this bullish flag is broken.

Martinez previously had pointed out that Dogecoin price has established a strong support level around $0.081. This support level was backed by 30 billion $DOGE traded near $0.081 as per Glassnode’s UTXO Realized Price Distribution (URPD), an on-chain metric that shows the amount of a crypto that last moved within specific price ranges hence revealing where investors acquired their coins.

Ultimately, Martinez expects Dogecoin price to experience its next major sell pressure at approximately $0.177, based on the URPD.

Why Dogecoin price could rally further soon

A bullish sentiment for Dogecoin price in the near term is bolstered by its predominantly positive Funding Rate, a fee set to balance the perpetual contract price to the underlying asset price. Specifically, the $DOGE Funding Rates have remained positive since July 24 to date, based on metrics from CoinGlass.

Historically a positive Funding Rate has been associated with bullish sentiment and vice versa. As of press time, this memecoin had a reported Open Interest (OI), a measure of all open derivatives positions at a given time, of $1.36 billion.

With the established bullish momentum, amid predominantly bullish derivative traders, Martinez’s target could be reached soon.

Featured image via Shutterstock