Will Dogecoin Price Rally 32%? Bullish Divergence Suggests Big Move
The post Will Dogecoin Price Rally 32%? Bullish Divergence Suggests Big Move appeared first on Coinpedia Fintech News
Dogecoin (DOGE), the world’s biggest meme coin with a market cap of over $13.35 billion is poised for a significant upside rally. On a daily chart, DOGE is flashing a bullish divergence in the Relative Strength Index (RSI), indicating a potential trend reversal from a downtrend to an uptrend.
Bullish Divergence in Dogecoin
Since the beginning of August 2024, DOGE has been forming a lower low, while the technical indicator RSI has been making higher lows. This indicates that the selling pressure that DOGE has been experiencing for a longer period could decrease in the coming days. Traders and investors see bullish divergence as a potential buy signal.
Dogecoin Price Prediction
According to expert technical analysis, DOGE is currently at a crucial support level of $0.095. Additionally, it is trading above the 200 Exponential Moving Average (EMA) on a weekly time frame, indicating it is in an uptrend.
Based on the historical price momentum, whenever the DOGE price reaches to this support level it typically sees an upside rally of 15% to 20%. However, due to the bullish divergence, there is a high possibility that it could soar by 32%, reaching up to the $0.128 level this time.
Bullish On-Chain Metrics
CoinGlass’s DOGE exchange liquidation data shows that short sellers are still dominating and potentially liquidating long positions on daily and weekly time frames. On a weekly time frame, the major liquidation levels are at $0.0956 on the lower side and $0.103 on the upper side, as traders are over-leveraged at these levels.
If the sentiment remains bearish and DOGE fails to hold the $0.0956 level or 200 EMA, nearly $4.78 million worth of long positions will be liquidated. Conversely, if the sentiment shifts and the price rises to the $0.103 level, approximately $22 million worth of short positions will be liquidated.
The trading bets by short sellers are nearly 4 to 5 times higher than bulls’ long positions, which simply indicates the dominance of the bears.
Rising Open Interest and Price Momentum
At press time, Dogecoin (DOGE) is trading near $0.0968 and has experienced a price drop of nearly 2% in the last 24 hours. Despite the price decline, its open interest has increased by 1% in the past hours and 1.5% in the last four hours. This rising open interest shows growing investors’ and traders’ interest in DOGE amid the market downturn.
