Dogecoin (DOGE) could be gearing up for a significant appreciation with a possible upside of 45%. In an X post on Wednesday, analyst Ali Martinez identified a bull flag pattern in DOGE’s short-term trading chart. This pattern indicates that Dogecoin has a support level of around $0.35. If this is held, then DOGE might rise as high as $0.56, which is excellent news for traders and investors in the cryptocurrency market.
DOGE Bullish Pattern
The bull flag pattern on the chart shows a bullish scenario, and if support holds, we may expect further upward movement. In this case, the $0.35 support level has been a very important barrier for DOGE because it has held several times in the recent price drops.
Marteniz’s analysis is built on this as a foundation for the next level of advances. If DOGE can sustain above $0.35, it may even be ready for an upward movement to $0.56, as indicated in the analysis. As of press time, DOGE is trading at $0.3777, showing a 2.75% decline over the past day.
This pattern forms a descending triangle where a series of lower highs meet resistance at $0.35. DOGE’s recent price performance shows that it has likely found some support at this level as buyers continue to push the price up each time it comes close to this level. These consolidations and the bull flag have increased the chances of a breakout. A rally may be seen if DOGE’s price rises past the present resistance level.
DOGE Soars Above $0.40 as Retail Interest and Futures SurgeMVRV Ratio Suggests Growth
Besides the bull flag, Martinez also mentions the Market Value to Realized Value (MVRV) ratio as another indicator that indicates DOGE’s further growth. The MVRV ratio, which measures the ratio of DOGE’s market capitalization to the cost basis of the coins, now stands at 45.65%. In the past, DOGE trade was at its highest when the MVRV ratio was at 78%. This lower current level means that DOGE is not yet in the overbought territory to enable more gains.
The short-term expectation for DOGE is still bullish, provided the price is above the $0.35 level. The convergence of the technical indicators points to strength, and the positive MVRV ratio strengthens Marteniz’s bullish view. However, as with any other cryptocurrencies, prices can be rather volatile and may change the given forecast. For now, however, DOGE traders are focusing on the $0.35 level and waiting for a possible breakout to rally toward $0.56.
