The leading cryptocurrency analyst further expressed his belief that Dogecoin may be on an upward trajectory in the current market cycle. This is thanks to renewed buyer interest in the coin after its recent decline.
The growing volume signals robust demand for Dogecoin
In Post XCrypto analyst Emilio Crypto Bojan described DOGE’s latest drop as a “generational entry point.” According to Bojan, trading volume began to enhance shortly after the coin bottomed, suggesting that many investors were buying the dip rather than selling.
The meme coin fell about 14% to $0.07763 during last week’s period of high volatility, when Bitcoin fell to $59,000. Bojan sees this as the perfect time to buy this coin at a low price.
DOGE has since risen to around $0.08529. The coin is also in high demand among traders, with a 24-hour trading volume of around $812.7 million and a market value of around $14.5 billion.
Analysts are now watching closely price level of $0.099. This is seen as an essential resistance point for Dogecoin. Bojan believes that if the meme coin breaks above the $0.099 mark and stays there, it could confirm that buyers have regained control of the market. He expects the cryptocurrency to “pump hard” once it regains this level.
Meanwhile, data from Santiment shows that wallets holding between 100 million and 1 billion DOGE have been reducing their holdings in recent weeks. These wallets currently control 23% of Dogecoin’s circulating supply. The decline is the lowest in five months.
At the same time, wallets holding more than 1 billion DOGE, which are often associated with cryptocurrency exchanges, increased their share in the circulating supply. Their shares increased to 47%, which proves the high activity of retail investors.
DOGE’s bullish sentiment is growing among analysts
Another analyst, Trader Tardigrade, Lately he pointed to a chart pattern reflecting Dogecoin’s historical bull cycle. The analyst noted that the coin appears to be repeating the same sequence as 2014-2017, when the coin went through a long consolidation period, followed by a falling wedge formation and then a breakout.
In the previous cycle DOGE rallied in an amazing way 29,000% after pattern completion. Trader Tardigrade believes that the current market structure looks quite similar, which raises expectations that another massive move could occur.
Ali Martinez adds to the bullish outlook excellent that Dogecoin recently reached its price target of $0.0883. He said the meme coin is currently testing the lower boundary of its current trading channel, which could determine its next move.
As long as the coin remains above this support level, the analyst believes a bounce towards $0.1019 and possibly $0.1156 is likely. According to the newspaper, the coin’s value was $0.08522 data from CoinMarketCap.
Featured image from pngtree, chart from Tradingview.com
