Dogecoin poised for rally if pattern breaks, says analyst

Technical analyst Aaryamann Shrivastava has made a bullish prediction about the near future of cryptocurrency Dogecoin (DOGE). According to the analysis, the meme-based coin could be on the verge of experiencing a significant appreciation, based on technical indicators and market data.

“Dogecoin is approaching the upper trendline of the falling wedge pattern. This suggests a breakout is imminent,” Shrivastava said.

The analyst highlighted that this graphical formation, which connects several high and low levels since March, indicates a possible upward movement. On Friday, DOGE was trading around $0.106.

According to Shrivastava, if Dogecoin price breaks the upper trendline and closes above the 50-day exponential moving average (EMA), which is around $0.106, it would confirm an uptrend.

According to him, this breakout could signal a 33% rise from the current level, with the coin testing its daily resistance of $0.141.

Shrivastava’s analysis is reinforced by technical indicators such as the MACD (Moving Average Convergence Divergence), which shows a bullish crossover on the daily chart.

“The MACD line (blue line) is above the signal line (yellow line), indicating that bulls are dominating the market,” comments the analyst.

Furthermore, the rising green bars above the neutral zero line on the MACD histogram confirm the positive momentum for Dogecoin.

Dogecoin Analysis

Another important piece of data pointed out by Shrivastava is Dogecoin’s long-to-short ratio, which measures the proportion between bought and sold positions.

According to Coinglass data, this ratio reached 1.16, the highest level in almost a month, surpassing the value of 1 last Friday. For the analyst, this means that more traders are betting on the asset’s price to rise, which further strengthens the optimistic outlook.

The analyst also cites Santiment’s Age Consumed index, which measures the movement of tokens stored in wallets over long periods.

He points out that spikes in this index indicate that dormant tokens are on the move. This can be used to predict short-term local tops or bottoms. Historically, these spikes are followed by an increase in the price of Dogecoin. The recent spike seen on August 7 was a harbinger that DOGE was ready for an upward move.

Despite the optimistic projection, Shrivastava warns that if Dogecoin’s daily candle closes below $0.088, it would invalidate the bullish thesis. “In this scenario, Dogecoin’s price could undergo an 11% correction, returning to the weekly support of $0.078,” concludes the analyst.

Follow Todaysgist on