Dogecoin (DOGE) Makes Significant Monthly Gains, What's Next?

Dogecoin [DOGE], the largest memecoin by market cap, has made significant gains on monthly charts. Since making a lower low of $0.08 in early September

Dogecoin (CRYPTO: DOGE) has seen some impressive gains on the monthly chart. After forming a lower low at $0.08 in early September, it has been consistently making higher highs.

At the time of writing, DOGE was trading at $0.1184, showing a 19.36% surge on the 30-day chart. The memecoin also saw a 9.14% increase over the past week.

However, the last 24 hours saw a decline, with DOGE dropping by 3.65%.

Despite the downside on the daily chart, the overall gains have left analysts betting big on the memecoin’s trajectory. In fact, one crypto analyst suggested an upcoming rally, citing the sustainability of three factors that could drive DOGE’s surge.

Now, let’s take a closer look at some of the key factors that could be influencing Dogecoin’s price movements, according to the analyst.

One interesting observation made by the analyst was regarding DOGE’s breakouts from a descending channel and their relation to its price movements.

According to the analyst, whenever DOGE breaks out from a descending channel, it makes a significant move. Now, considering that this breakout was confirmed in the past week, it could be signaling an upcoming uptrend on the horizon.

Another interesting insight pointed out by the analyst was regarding Dogecoin’s percentage gains each cycle.

For instance, in the first cycle, DOGE saw a 9363% increase, and during the second cycle, it saw a 29626% surge. This implies that every cycle, DOGE sees more gains compared to the previous cycle. Thus, holding that factor constant, the next cycle will see even more gains.

Furthermore, several other factors in the current market could be positioning DOGE for a historical surge. Let’s explore some of them.

Increased adoption: The memecoin has experienced a consistent growth in the number of transactions, which could lead to higher demand.

Price affordability: DOGE’s lower price point, compared to other cryptos, will attract more investors, potentially leading to a broader investor base.

Technological upgrades: Enhancements like faster transaction processing and improved security will help DOGE rise further.

Based on these developments, the analyst seems to be suggesting that DOGE could see further gains in the upcoming cycle. Now, let’s see what other fundamentals suggest.

Undoubtedly, the analyst makes a compelling case for Dogecoin’s future price movement. But what do other fundamentals suggest?

For starters, Dogecoin’s number of transactions has surged outpacing all other memecoins. According to IntoTheBlock, DOGE saw an exponential surge in the number of transactions over the past week.

As a result, the memecoin saw 782k transactions in the past week, which constituted 74.45% of all memecoin transactions in that period. This shows an increased number of active users and interaction with the network, suggesting strengthening fundamentals.

Moreover, most investors have been taking long positions for DOGE in the past week. A positive funding rate, aggregated by the exchange over the last seven days, indicated this.

Such market behavior means that investors are going long while paying a premium to hold their positions. This shows confidence in the memecoin’s direction.

Finally, Dogecoin has seen a positive large holders netflow for the last six days. In short, a surge in large holders’ netflow can be seen as accumulation from large players, while drops point to reduced positions or selling.

With a sustained positive netflow, it implies that large holders are increasing their positions.

To sum it up, DOGE is experiencing a strong upward momentum, supported by strengthening fundamentals. Therefore, if this market sentiment holds, DOGE will reclaim the $0.12 resistance in the short term. A breakout from here will see a surge to $0.135.

The above is the detailed content of Dogecoin (DOGE) Makes Significant Monthly Gains, What's Next?. For more information, please follow other related articles on the PHP Chinese website!