Meme cryptocurrency Dogecoin (DOGE) continues to dominate the spotlight amid the ongoing market recovery, posting significant gains as it strives to breach the $0.20 resistance.
In this regard, a crypto analyst using the pseudonym Behdark in a TradingView post on May 5 suggested that, based on technical indicators, Dogecoin’s price could be poised for a ‘long-term bullish rally.
The chart analysis indicated that Dogecoin may be in the final stages of a bullish diametric pattern with the current market position. Diametric patterns are characterized by alternating waves of price contraction and expansion, often leading to significant price swings.
DOGE price analysis chart. Source: TradingView
Notably, the expert identified a robust support zone at $0.10, which has consistently propelled the price upwards whenever tested. This pattern suggests bullish market sentiment favoring higher prices, a factor that could instill confidence in Dogecoin traders.
DOGE enters bullish wave
According to the expert, Dogecoin appears to have entered a bullish wave marked by a notable uptrend. Compared to previous market movements, the current bullish wave is anticipated to last more than 500 days, signifying a potential sustained upward momentum.
“A strong support zone has formed on the chart (shown in green). Every time the price returns to this area, it will be rejected to the upside. From where we placed the green arrow on the chart, the price has entered a bullish wave,” the expert said.
Additionally, the market analyst referenced a significant correction period lasting nearly 900 days preceding the current wave. In this case, such extended correction phases are typical in cryptocurrency markets and often precede substantial price movements.
Dogecoin records spike in network activity
Indeed, Dogecoin continues to be dominated by bullish sentiments, a trend also reflected in on-chain data. Notably, amidst the ongoing rally, data from IntoTheBlock highlighted increased network activity, contributing to sustained buying pressure surrounding the token.
For instance, data shared on May 3 indicated a significant spike in new Dogecoin addresses, with the platform adding 28,000 addresses on May 2 alone, marking a 102% increase from the monthly low observed earlier in the week.
DOGE addresses chart. Source: IntoTheBlock
At the same time, according to on-chain data, the coin appears to be experiencing renewed interest and engagement, evidenced by a surge in non-empty wallets. Insights provided by Santiment revealed a 27% increase in Dogecoin non-empty wallets over the last six months, totaling 6.6 million wallets.
In addition to network activity, Dogecoin is counting on other perennial catalysts to drive its price toward $0.20, a crucial level that could potentially propel the coin toward the $1 mark. Notably, investors are closely monitoring events involving Tesla (NASDAQ: TSLA) CEO Elon Musk.
In the latest development, Tesla’s payments page has been updated to include Dogecoin formally. Under this development, DOGE will be accepted as payment for select Tesla merchandise. Furthermore, the potential role of DOGE in X Payments is a topic that has piqued investors’ interest.
DOGE price analysis
By press time, DOGE was trading at $0.16 with daily gains of approximately 1.5%. On the weekly chart, the meme coin has seen an increase of nearly 8%.
DOGE seven-day price chart. Source: Finbold
In conclusion, it is worth noting that DOGE has increasingly traded in tandem with Bitcoin (BTC). Therefore, in addition to technical indicators and network activity, the token’s trajectory significantly hinges on how the maiden cryptocurrency performs in the market.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
