- DOGE’s network activity remained high over the past week.
- Most market indicators seemed bearish for the memecoin.
Dogecoin [DOGE] bears have regained control of the memecoin’s price action by phishing the coin down. However, there was more to the story as the memecoin was about to break the bullish pattern.
In the event of a successful breakout, investors could expect DOGE to move towards $1.
Will Dogecoin Break Out Soon?
CoinMarketCaps facts revealed that the value of the world’s largest memecoin has fallen by more than 4% in the past seven days. This became even worse in the last 24 hours as the coin saw another 4% price drop.
At the time of writing, Dogecoin was trading at $0.09534 with a market cap of over $13.9 billion, making it the 8th largest crypto.
According to our look at IntoTheBlock’s facts3.52 million DOGE addresses made a profit, which amounts to more than 54% of the total number of DOGE addresses.
In the meantime, World Of Charts, a popular crypto analyst, posted a tweet This reveals a bullish pattern on the DOGE chart. The bullish falling wedge pattern appeared on DOGE’s chart a few months ago, and since then the coin’s price has been consolidating within it.
At the time of writing, the coin was showing signs of a bullish breakout. If the pattern is to be believed, a breakout could see DOGE move towards $1 in the coming weeks.
Source:
The chance that DOGE will break out
AMBCrypto then assessed the on-chain data of the world’s largest memecoin to better understand whether it will manage a bullish breakout. Our analysis of Santiment’s data showed that Dogecoin’s MVRV ratio fell last week, indicating a continued price decline.
However, the rest of the statistics looked optimistic. For example, the number of whale transactions remained high. Additionally, daily active addresses were also stable, reflecting consistent traffic on the blockchain.
Source: Santiment
Other than that, at the time of writing, DOGEs fear and greed index had a value of 39%, meaning the market was in a “fear phase”.
When the benchmark reaches this level, it indicates that the likelihood of a price increase is high. We then looked at DOGE’s daily chart to see what the technical indicators were suggesting regarding a bullish break above the falling wedge pattern.
Is your portfolio green? View the DOGE profit calculator
According to our analysis, the Relative Strength Index (RSI) registered a downward trend. The MACD also showed a bearish crossover, indicating that it could take longer for DOGE to rise above the bull pattern.
Nevertheless, the Chaikin Money Flow (CMF) remained bullish and registered an upswing.
Source: TradingView