Dogecoin has staged a powerful comeback, surging over 32% in the past seven days and climbing 8.57% in the last 24 hours alone, reaching $0.2727. DOGE has once again captured market attention, with its market cap zooming to $41.01 billion and daily volume rocketing past $6 billion. The rally comes amid a technical breakout, whale accumulation, and a significant capital injection by Bit Origin Ltd.
However, not everything is bright, as the risk of $442 million worth of token unlocks and overleveraged positions may test the rally’s future. If DOGE is under your watchlist, this short-term Dogecoin price prediction is a must-read for you.
Why is DOGE Price Going Up?
The moonish DOGE price rally is being driven by the following bullish catalysts:
- Technical Breakout: The completion of a textbook cup and handle pattern has triggered a breakout above the crucial $0.25 resistance level. This has resulted in the liquidation of nearly $19.94 million in short positions, further fueling the rally.
- Altcoin Rotation: DOGE’s surge coincides with the breakout of the TOTAL2 chart, which tracks the total crypto market cap excluding Bitcoin, above an 8-year resistance..
- Whale Accumulation: Wallets holding 100 million to 1 billion DOGE have added 1.08 billion DOGE in July alone. This includes a notable 48-hour spree that saw massive inflows.
- Institutional Backing: Bit Origin Ltd.’s $500 million fundraising round, aimed specifically at investing in Dogecoin, has added credibility to the meme token.
Dogecoin Price Analysis
As evident from the chart that I have shared, the breakout from the cup and handle formation suggests a measured target near $0.3299. Successively, Dogecoin could also have a further upside potential toward $0.4274 if momentum sustains. Talking about indicators, the Bollinger Bands are expanding rapidly, confirming rising volatility and buying pressure. RSI stands at 85.06, signaling extreme overbought conditions.
However, caution is advised, as a $442 million token unlock scheduled this week may lead to short-term selling pressure. This could drag the price down to $0.20 if the support at $0.20 is broken.
FAQs
A cup-and-handle breakout, whale accumulation, and Bit Origin’s $500M fund have triggered the surge
It is worth noting that despite bullish momentum, high RSI, token unlocks, and leveraged longs pose short-term risks.
