Is Dogecoin preparing for a bull run?

The recent bullish momentum in the cryptocurrency market propelled various digital assets, including popular meme coins like Dogecoin (DOGE), to record double-digit gains over the past month. However, this upward surge encountered resistance as DOGE’s price chart turned bearish, raising questions about the potential for another rally.

Crypto Tony, a renowned crypto investor and trader, highlighted a bullish signal in a recent tweet based on DOGE’s price chart. The indication suggested that DOGE had surpassed a crucial resistance level by crossing the $0.08 mark, sparking anticipation of a new bull rally with the potential to drive DOGE’s price to new highs.

Unfortunately, the optimistic outlook swiftly shifted as DOGE underwent a correction in its recent price trajectory. According to CoinMarketCap, DOGE’s price experienced a more than 5% decline in the last 24 hours, bringing it to $0.07672 with a market capitalization exceeding $10.8 billion. The concerning aspect was the simultaneous increase in trading volume, commonly interpreted as a bearish sign.

Reasons Behind the Downtrend:

An analysis of Hyblock Capital’s data by AMBCrypto pointed to a potential cause for the recent downtrend. Liquidation of DOGE increased when its price touched the $0.082 mark, leading to heightened selling pressure and a subsequent decline in price.

This downturn also impacted the social dynamics of the meme coin. Santiment’s data, examined by AMBCrypto, revealed a substantial decrease in Dogecoin’s social volume over the past few days. The weighted sentiment also reflected a negative trend, aligning with the decline in popularity.

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Bearish Indicators and Metrics:

AMBCrypto’s analysis of DOGE’s daily chart highlighted several bearish indicators. The MACD displayed a bearish crossover, and DOGE’s price reached the upper limit of the Bollinger Bands. Additionally, both the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) recorded downticks, suggesting an increased likelihood of a continued price drop.

Notably, whale activity surrounding the meme coin witnessed a decline. Santiment’s data indicated a reduction in Dogecoin’s Whale Transaction Countand Velocity over the last week, signaling less frequent use of DOGE in transactions within a specific time frame.

Frequently Asked Questions (FAQ):

1. What bullish signal was observed on Dogecoin’s price chart, according to Crypto Tony?

Crypto Tony highlighted a bullish signal indicating that DOGE’s price broke past a resistance level, surpassing the $0.08 mark.

2. What caused the recent correction in Dogecoin’s price?

An analysis of Hyblock Capital’s data suggested that DOGE’s liquidation increased when its price touched $0.082, leading to a decline in price.

3. How did Dogecoin’s social dynamics change during the recent downtrend?

Santiment’s data revealed a decrease in Dogecoin’s social volume, and the weighted sentiment turned negative, indicating a decline in popularity.

4. What bearish indicators were identified in AMBCrypto’s analysis of DOGE’s daily chart?

The MACD displayed a bearish crossover, and both the RSI and CMF registered downticks, suggesting a higher probability of a continued price drop.

5. How did whale activity around Dogecoin change recently?

According to Santiment’s data, Dogecoin’s Whale Transaction Count and Velocity declined over the last week, indicating less frequent use of DOGE in transactions within a specific time frame.

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The recent bullish momentum in the cryptocurrency market propelled various digital assets, including popular meme coins like Dogecoin (DOGE), to record double-digit gains over the past month. However, this upward…

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