- Dogecoin bounces back from $0.16 support, signaling the potential for further growth.
- Narrowing Bollinger Bands suggests Dogecoin may be preparing for a sharp upward move.
- A 76.26% of traders on Binance Futures are bullish, fueling confidence in DOGE’s recovery.
Dogecoin (DOGE) has seen an upward movement in its value, rising by 3.06% in the last day. The cryptocurrency rose from the $0.16 support level, and this is a sign that the cryptocurrency has the potential to rise higher. Analysts are hopeful that this might be the start of a parabolic move to the upside. This outlook is further supported by the futures market, which has taken a bullish stance as traders keep an eye on it.
Ali Martinez highlighted a key technical signal on Dogecoin’s 12-hour chart. In an X post on Monday, he shed light on the narrowing Bollinger Bands, a classic indicator of an impending major price move. This pattern often precedes significant volatility, suggesting that Dogecoin may be preparing for a sharp upward movement.
DOGE Bullish Sentiment Grows
Dogecoin has been hovering around the $0.16 to $0.18 peak. A push above this region may attract additional demand from buyers. Such a move would lead to a quick reversal that could bring the price closer to $0.30 or even above it. This is evident from the price action, where traders are expecting more upswings in the near future.
Additionally, the Binance Futures market data showed a bullish outlook for the DOGE token. According to sentiment analysis of open positions in the DOGE market, 76.26% of traders are bullish. This high percentage of bullish positions means that sentiment for Dogecoin is highly optimistic after the recent crash. As a result, market participants believe there is potential for further gains, suggesting that the meme coin could rise in value.
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Analyst Trader Tardigrade pointed out that Dogecoin was on a gradual recovery from an ascending triangle formation. This formation is characterized by a series of higher highs and higher lows. This change in the movement from the downside to the upside indicates that the market structure for Dogecoin is beginning to establish a long-term upward trend. Higher high formation for the second time in the hourly chart indicates that an uptrend has begun.
Traders and analysts are closely monitoring Dogecoin’s price action. A decisive breakout could set the stage for a more significant rally, with expectations that the coin may reach new highs in the near future. As the market sentiment grows more bullish, Dogecoin’s next move could be a game-changer.
