Dogecoin (DOGE) price is consolidating in a large falling wedge pattern, which is approaching a breakout, according to one analyst. Also, a decisive move above the upper trendline could be the key to triggering an uptrend for DOGE. Experts draw attention to the fact that today, April 20, is celebrated as a “breast day”. Here are the details…
Will the Dogecoin price break out today?
4/20 (April 20) is celebrated as a meme day, so according to analyst Akash Girimath, Dogecoin has a good chance of pumping. Therefore, investors should closely follow the dog-themed coins that have the support of Tesla CEO Elon Musk, the Dogefather. As we reported on cryptokoin.com, the Dogecoin price dropped roughly 85% from its peak of $ 0.740 to $ 0.109 in about 308 days.
The technical formation in question predicts a 68 percent rise, which is obtained by adding the distance between the initial high and low swing point to the breakout point. Since last week, Dogecoin price has approached the upper trendline to move higher, according to analyst Akash Girimath. Interestingly, DOGE is already hovering above the upper trendline, but confirmation of the breakout is not here yet. Assuming a breakout near $0.140, the pattern suggests the target would be $0.233, after a 68 percent rise.
What do on-chain metrics show?
The on-chain metric that aptly presents the bullish outlook for Dogecoin price, according to the analyst, is the 365-day Market Cap/Actual Value ratio (MVRV). These ten chain metrics are used to determine the average profit/loss of investors who have purchased DOGE in the past year. According to Santiment’s research, a value below 10 percent indicates that short-term holders are at a loss and are less likely to sell. Most often, this is where long-term owners accumulate. Therefore, any movement below 10 percent is referred to as the “zone of opportunity.”
For DOGE, the 365-day MVRV has been hovering below the zero line since October 2021 and has remained below 30 percent since December 2021, which is the altcoin’ It shows how wildly oversold is and why it will recover sooner or later. Regardless of bullish statements, a one-week candlestick below $0.078 will invalidate the bullish view. In this case, traders need to prepare for a possible collapse to $0.048.
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