Dogecoin Breaks Out of Descending Triangle Pattern, Indicating Bullish Outlook
Dogecoin (DOGE) has experienced a surge in value, gaining over 7% in the past week. The cryptocurrency has settled at the $0.069 price range with a market cap exceeding $9 billion, showcasing its widespread adoption. On the weekly chart, DOGE is displaying signs of a breakout pattern as more buyers continue to accumulate tokens.
Crypto analyst Ali Chart suggests that Dogecoin has broken out of a multi-year descending triangle pattern on the weekly chart. This breakout confirms a buy signal for the asset on the weekly timeframe, indicating a bullish outlook for its future.
DOGE Breaks Out of Descending Triangle Pattern
From July 2023, DOGE entered a descending triangle pattern due to bearish market conditions causing a decline. However, in October, buyers managed to break out of this pattern as the general market shifted into an uptrend.
Notably, DOGE successfully turned the $0.067 resistance level into support and rallied towards the $0.071 resistance level. Two consecutive green candles on the weekly chart further confirm its breakout from the descending triangle.
Whale Movement Boosting Dogecoin’s Price Surge
According to Whale Alert, a dormant address holding over 5.39 million DOGE tokens worth $372,461 has been reactivated after almost 10 years of inactivity since DOGE’s launch in 2013. This whale address transferred 392,000 DOGE to a new blockchain address.
In addition, a significant transfer of 350 million DOGE tokens was made to crypto exchange Robinhood from another whale address on October 27. These transfers contribute to increased on-chain activity and are likely fueling Dogecoin’s rally in the past week.
Continued Uptrend for Dogecoin
Dogecoin’s status as one of the largest cryptocurrencies by market cap is further supporting its price surge. As long as the general market sentiment remains positive, DOGE’s uptrend is expected to continue in the coming weeks.
Hot Take: Dogecoin Shows Strong Performance Amidst Crypto Market Rally
Dogecoin has emerged as a top performer in the recent crypto market rally, gaining over 7% in value. Its breakout from a descending triangle pattern and increased on-chain activity from whale movements have contributed to its bullish outlook. With its widespread adoption and strong market cap, Dogecoin is likely to sustain its upward trajectory in the coming weeks, especially if the overall market sentiment remains positive. As more buyers accumulate DOGE tokens, its value is expected to continue rising. The future looks promising for this meme coin with a growing fanbase.
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