Dogecoin has also benefited from the general rally in the crypto market and has been gaining more than 7% in the past week. DOGE today has settled at the $0.069 price range, with a market cap of over $9 billion, demonstrating its massive adoption. Also, on the weekly chart, DOGE is showing signs of a breakout pattern as more buyers continue to accumulate the tokens.
According to crypto analyst Ali chartDogecoin has broken the multi-year descending triangle pattern on the weekly chart. The analyst believes this confirms a buy signal for the asset on the weekly term, making the future outlook optimistic.
DOGE breaks out of the descending triangle pattern
DOGE entered a descending triangle pattern from July 2023 as bearish conditions in the market forced a decline. However, buyers forced a break from this pattern in October when the overall market entered an uptrend.
Notably, DOGE turned the $0.067 resistance level into support and recovered to the $0.071 resistance level. In addition, DOGE formed two consecutive green candles on the weekly chart, confirming the breakout from the descending triangle.
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Moreover, the Relative Strength Index (RSI) shows a value of 51.8 in the neutral zone and moves sideways. It implies that even though the buyers are dominant, some traders start making profits, which leads to a slight decline. However, if the RSI moves towards 55, the buyers are likely to resume the accumulation phase.
Furthermore, the Moving Average Convergence/Divergence (MACD) is above its signal line, indicating a buy signal on the weekly chart. Furthermore, the green histogram bars confirm that buyers are not done accumulating DOGE yet. If DOGE breaks above the $0.071 resistance level, the rally is likely to continue in the coming weeks.
Whale Movement Helps Dogecoin Price Rises
According to the crypto tracking platform Whale alertis a dormant address with over 5.39 million DOGE tokens worth $372,461 reactivated. Notably, this address remained inactive for almost a decade, with its last activity in 2013 when DOGE was launched on the public market.
Whale alert confirmed that this whale transferred 392,000 DOGE to a new blockchain address. Also, on October 27, as many as 350 million DOGE tokens were transferred to the crypto exchange Robinhood from a whale address.
These transfers likely contributed to Dogecoin’s rally over the past week due to increased activity on the chain. Also, the general price increase in the crypto market led to a rally for meme coins.
Furthermore, Dogecoin’s profile as one of the largest cryptocurrencies by market capitalization contributes to the price increase. Therefore, DOGE’s uptrend could continue in the coming weeks if overall market sentiment remains positive.
Featured image from Shutterstock and chart from TradingView.com
