- DOGE has surged 19.36% over the past month.
- Strengthening fundamentals and historical performance suggest an upcoming rally.
Dogecoin (DOGE), the largest memecoin by market capitalization, made significant gains on the monthly charts. Since hitting a low of $0.08 in early September, it has been consistently making highs.
In fact, at the time of writing, DOGE was trading at $0.1184. This represents a rise of 19.36% on the 30-day chart and an increase of 9.14% over the past week.
However, the last 24 hours saw a decline, with memecoin falling by 3.65%.
Despite the downsides of the daily charts, the overall gains have analysts betting big on Memecoin’s trajectory. A cryptocurrency analyst has suggested an upcoming rally, citing the sustainability of three factors that could spur DOGE’s rise.
Factors That Could Drive Dogecoin’s Rise
The analyst cited historical performance and its relationship to the current market trend.
Source:
According to the analyst, every time DOGE breaks out of a descending channel, it makes considerable gains. As such, this breakout was confirmed last week, signaling that an upcoming uptrend is on the horizon.
Likewise, the analyst pointed out that Dogecoin experiences an exponential increase in winning percentage with each cycle. For example, during the first cycle, Doge saw an increase of 9,363% and an increase of 29,626% during the second cycle.
This implies that with each cycle, DOGE sees more increases compared to the previous cycle. So, by keeping this factor constant, the next cycle will see even more gains.
Additionally, various other factors in the current market could position DOGE for a historic surge. First, increased adoption as memecoin has seen steady growth in transactions, which could lead to higher demand.
Second, the affordability of DOGE, as memecoin has a lower price than other cryptos, which will attract more investors, potentially leading to a wider investor base.
Finally, increased technological upgrades will help DOGE progress further. As such, improvements such as faster transaction processing and improved security could further boost Dogecoin’s usefulness and appeal.
Therefore, based on these developments, as the analyst pointed out, DOGE could see further gains in the next cycle.
What DOGE Charts Say
Without a doubt, the analyst presents a compelling case for the future price action of Dogecoin. The question is: what do the other fundamentals suggest?
Source: In the block
For starters, Dogecoin’s transaction count has surpassed that of all other memecoins. According to IntoTheBlock, DOGE has seen an exponential increase in transactions over the past week.
As such, memecoin saw 782,000 transactions last week, accounting for 74.45% of all memecoin transactions during this period. This shows an increased number of active users and interaction with the network suggesting strengthening fundamentals.
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Additionally, last week, most investors took long positions in DOGE. This was indicated by a cumulative positive funding rate by the exchange over the past seven days.
Such market behavior means that investors take long positions while paying a premium to maintain their positions. This shows confidence in the direction of the memecoin.
Source: In the block
Finally, Dogecoin has seen positive net flow for large holders over the past six days. In short, an increase in net flow from large holders can be seen as accumulation by large players, while a decline indicates a reduction in positions or a sale.
With a positive and sustained net flow, this implies that large holders are increasing their positions.
Read Dogecoin (DOGE) Price Prediction 2024-2025
Simply put, DOGE is experiencing strong bullish momentum supported by strengthening fundamentals. Therefore, if this market sentiment persists, DOGE will regain the $0.12 resistance in the near term.
A breakout from here would see a rise to $0.135.
