Dogecoin is currently enjoying a reasonable uptrend following Bitcoin’s recovery above $71,000. This sent the entire cryptocurrency market into a state of euphoria and the DOGE price broke the $0.16 resistance level in the meantime. This bullish trend is expected to continue as one analyst points out that Dogecoin has formed a bullish triangle pattern.
Dogecoin triangle pattern indicates further uptrend.
In a TradingView post, cryptocurrency analyst Lingrid pointed out an interesting shape on the Dogecoin chart. According to analysts, meme coins have successfully formed a triangle pattern, which has historically led to bullish prices.
Explaining how this happened, the cryptocurrency analyst explained that the market is consolidating below the upper border of the triangle. Now this triangle pattern often leads to price pressure, which is very bullish for the price.
Lingrid identified a Dogecoin range area just above $0.15, which was important for the formation of a triangle. This is because the appearance of a range zone suggests that a sale is underway and prices are starting to move. Sometimes this can be bearish or bullish, but this time the price is bullish as it “consolidates just below the upper boundary of the triangle,” as the cryptocurrency analyst points out.
Additionally, meme coins have been making higher lows, suggesting a continuing bullish trend. “Once the price breaks the downtrend line, we can expect a bullish rally to follow. Additionally, if the price breaks through the range area and closes above it, the market is likely to move higher. My target is resistance at 0.17500,” says Lingrid.
DOGE remains bullish
Dogecoin price showed some strength this week as investor attention turned to meme coins. One way this shines is with the digital asset’s trading volume, which has surged more than 130% in the past week. Currently, according to Coinmarketcap data, trading volume has increased by more than 132%, reaching nearly $2 billion at the time of this writing.
At the same time, Dogecoin open interest has increased significantly, suggesting that traders are now betting heavily on the price of DOGE. It rose 18% in the last 24 hours to reach $921.4 million, according to Coinglass data. This is the highest open interest in the past month, showing a reversal in the bearish trend. Historically, an increase in open interest has generally been correlated with an increase in price. Therefore, in this case, price increases are expected to continue.
Currently, DOGE bulls continue to dominate the market and are up over 8% in the last day. It is currently trading at $0.164, which is an increase of 122% over the last year.
Featured image from Dall.E, chart from Tradingview.com