The price of Dogecoin (DOGE) has risen by almost 8% today, putting the memecoin through a strong week. In the last seven days, the price has risen by more than 22%. In fact, a classic technical pattern suggests that the popular memecoin could reach new all-time highs in the near future.
Memecoins on the rise thanks to Bitcoin rally
The broader memecoin market is currently doing well, largely attributed to Bitcoin’s recent breakout above $100,000. This milestone has significantly strengthened the bullish sentiment across the crypto sector.
- Shiba Inu (SHIB) rose by 9.5%.
- Pepper (PEPPER) climbed 7.5% to $0.00001944.
- Bonk (BONK) in Dogwifhat (WIF) also recorded strong gains.
- SPX6900 (SPX) topped the list with a 40% increase in the past 24 hours.
With a total market capitalization of $115 billion, the memecoin sector has grown by 22% in the past week.
In addition, a significant increase is visible in the open interest (OI) for Dogecoin and other memecoins. This indicates that traders are opening more positions in anticipation of further price increases. Dogecoin’s open interest even reached a record high of $5.4 billion. Historically, a rise in open interest often leads to further price movements upward.
Technical Analysis: Bull Flag Pattern Points to New Records
On Dogecoin’s weekly chart, a clear bull flag pattern is visible, a classic bullish continuation pattern. This pattern occurs when a strong rise is followed by a consolidation phase in a descending channel.
Today, DOGE broke above the upper flag trendline at $0.39. If Dogecoin manages to close above this level, the technical analysis points to a price target of $1.75. Furthermore, the Relative Strength Index (RSI) remains at 65, well below the overbought zone, meaning there is still room for further gains.
The combination of a bullish broader market, rising open interest and a technically strong setup makes the likelihood of further price increases for DOGE likely. While volatility continues to play a role, a break above $0.39 could indicate Dogecoin is heading for new all-time highs. If this uptrend continues, DOGE could even break the magic $1 mark in the coming months.
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Source: https://newsbit.nl/dogecoin-doge-stijgt-met-bijna-8-en-toont-sterke-signalen-voor-verdere-groei/
