Dogecoin is currently seeing reasonable upside potential following Bitcoin’s recovery above $71,000. This threw the entire crypto market into a state of euphoria, and the DOGE Price broke through the $0.16 resistance. This uptrend is expected to continue as one analyst points out that Dogecoin has formed a bullish triangle pattern.
Dogecoin triangle pattern indicates more upside
In a business view job, crypto analyst Lingrid pointed out an interesting formation on the Dogecoin chart. According to the analyst, the room itself has managed to form a triangle pattern, which has been historically bullish for the price.
Explaining how this happened, the crypto analyst explained that the market consolidated below the upper boundary of the triangle. However, this triangular configuration often leads to price compression, which is very bullish for its price.
Lingrid identified a scope area for Dogecoin just above $0.15, which was important for the triangle formation. Indeed, the appearance of a range zone suggests that accumulation is underway and that it is time for the price to start moving. Sometimes it can be bearish or bullish, but as the crypto analyst points out, with the “consolidation just below the upper border of the triangle”, this time the price is bullish.
Additionally, the meme coin has created higher lows, suggesting that this is a sustained uptrend. “If the price crosses the downtrend line, we can expect a bullish rally. Additionally, if the price breaks through the range zone and closes above it, it is likely that the market will move higher. My target is resistance at 0.17500,” says Lingrid.
DOGE remains optimistic
This week, the price of Dogecoin has become rather bullish as investor interest has turned to the meme coin. This is reflected in particular in the volume of trade in digital asset which jumped more than 130% last week. Currently, Coinmarketcap data shows an increase of over 132% in trading volume, bringing it to almost $2 billion at the time of writing.
At the same time, there has been a significant increase in open interest on Dogecoin, suggesting that traders are now betting big on the DOGE price. Data from Coinglass shows that in the last 24 hours, there was an 18% increase to $921.4 million. This is the highest level of open interest in the past month and shows a trend reversal from the downtrend. Historically, an increase in open interest generally correlates with an increase in price. So, in this case, the price increase is expected to continue.
For the moment, DOGE bulls continue to dominate the market, pushing it over 8% on the last day. It is currently trading at $0.164, representing an increase of 122% over the last year.
Featured image of Dall.E, chart by Tradingview.com
