- Dogecoin fetched 6.3% gains on Tuesday, wiping out $2.1M in short positions.
- With over $1 billion in Derivatives volume, DOGE regains speculative interest.
- Seasoned crypto analyst draws attention to Dogecoin’s falling wedge pattern.
Dogecoin (DOGE) has been challenged by several hurdles, including tightening competition, the waning influence of Elon Musk’s tweets, and the lack of technical upgrades on the second-largest Proof of Work (PoW) chain.
However, the top dog coin managed to keep its comfortable spot in crypto’s TOP 10 by global market cap, and 73% of current DOGE holders profit from this price range. The broader crypto markets took a few major hits this summer, mostly evident in the double-digit price plunge on August 5, 2024.
Dogecoin’s Bullish Crossover Back in Play
As Dogecoin proved more resilient than most major-cap altcoins, DOGE quickly bounced from its three-month low of $0.082 to $0.106 on August 9, 2024. What followed next was the expected early September dip, as the first month of fall is historically bearish for most major-cap cryptos.
Intriguingly, it appears that Dogecoin has managed to flip the script after the first week of September produced its weekly DOGE price candle. Passing through the consolidation phase on September 2, 2024, its price briefly touched $0.10 before falling to $0.096.
Dogecoin reclaimed the $0.10 support level on September 9, 2024, completing a bullish crossover. This was spotted by crypto chart analyst Ðima James Potts, who showcased a historical chart where a DOGE breakout happened every time the green and red lines intersected during previous cycles.
What’s Needed for DOGE to Fetch $0.15?
In another technical chart analysis by seasoned crypto investor Ali Martinez, a bullish falling wedge pattern was spotted on the daily DOGE charts. In a falling wedge, two converging trend lines slope downward, but the lower trend line has a steeper slope than the upper one.
This points to a consolidation period for Dogecoin’s price, which can turn into a bullish trend reversal. “A sustained close above $0.10 could spark a bullish run to $0.15!” alludes Martinez. DOGE last approached $0.1499 on June 12, 2024, before backtracking to $0.12 in a week.
DOGE is changing hands at $0.104, picking up 6.3% gains over the past 24 hours. The renewed interest in Derivatives markets fosters DOGE’s northbound trajectory.
Whipping up a 51.8% increase in Derivatives trading volume to claim $1.08 billion in 24 hours, DOGE also saw $2.10 million of short-selling traders getting liquidated over the same time frame. The piling short leveraged position liquidations indicate a shifting market sentiment, as long traders outnumbered the short position holders 1.058:1, according to CoinGlass data.
On the Flipside
- Dogecoin’s previous bull rallies are often ascribed to endorsements by celebrity holders, most notably Elon Musk and Mark Cuban.
- Lately, these social mentions tend to have little to no effect on the market, despite Elon pronouncing DOGE the official mascot of the satirical “Department of Government Efficiency.”
Why This Matters
Dogecoin’s status as a meme coin didn’t prevent the crypto from becoming a long-term TOP 10 contender due to its specific traits and a light-hearted community of holders.
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