Can Dogecoin Price Surge 70% After Key Pattern Retest?
Dogecoin price appears to have launched a new bullish phase with bulls eager to push above resistance at $0.2. As sentiment gradually improves, investors are beaming with hope to see a stronger trend reversal.
An assessment of the current technical and fundamental outlook reveals that various factors could impact Dogecoin price action going into August including this week’s FOMC meeting and investor behavior.
Dogecoin Price Analysis: Is A Rally Possible?
After playing defense and losing at it in the first weeks of July, bulls finally assumed the reins, catalyzing a trend reversal from support at $0.1.
Dogecoin made a quick swing to $0.14 validating a falling wedge pattern. Although expected to guide a 70% rally to $0.216, a retest of the upper trend line could offer unique entry positions.
A falling wedge is a bullish reversal pattern formed as the price slides between two slanting trend lines.
Based on CoinMarketCap data, bulls are likely to have run out of steam as trading volume dropped to $800 million. Dogecoin must uphold the immediate confluence support established by the 50-day Exponential Moving Average (EMA) and the 200-day EMA.
A retest of the upper trend line support cannot be ruled out while the presence of the 20-day EMA will further increase the chances of Dogecoin price resuming the uptrend.
The Moving Average Convergence Divergence (MACD) indicator recently flashed a buy signal encouraging traders to buy the dip. However, the bulls must fight to keep this call to buy active this week.
How Dogecoin Futures Open Interest May Affect This Week’s Rally
Dogecoin futures interest open market has since last weekend improved to reach above $5 billion.
Increasing futures open interest signals growing market interest. It suggests more traders are taking positions, potentially indicating a stronger price trend.
Dogecoin traders can leverage the positive OI data to confirm the existing trend as upward but also identify potential reversals, in the event it starts to drop.
The meme coin hype could also rope in Dogecoin’s trend in the second half of the year. Dogecoin and its younger siblings including BOOK OF MEME in the sector seem poised to move alongside Bitcoin’s surge to test the previous all-time highs.
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