Dogecoin Primed for 32% Surge—If It Can Dodge the Crypto Circus

Memecoin's latest pump potential hinges on traders ignoring its usual volatility—because what could go wrong with internet money backed by Shiba Inus?

Technical charts hint at bullish momentum, but let's be real: in crypto, 'could' does a lot of heavy lifting. Remember when institutional adoption was 'imminent' in 2021?

If DOGE clears key resistance levels, the path opens for a 32% rally. Just don't check your portfolio during a Elon Musk tweet storm.

Closing thought: A 32% gain sounds great until you realize your altcoin bag is still down 90% from the last bull run. Thanks, 'hedge against inflation.'

Dogecoin (DOGE) price action and technical analysis

According to AMBCrypto’s chart analysis, Doge could soon be poised for significant upside on the charts.

On the four-hour chart, the memecoin was consistently facing resistance from a descending trendline. However, after consolidating for nearly three days, DOGE seemed to be breaking out of both the trendline and the consolidation pattern at press time – A bullish sign for the memecoin.

Source: Trading View

Dogecoin price prediction

Based on its recent price action and historical patterns, if the memecoin successfully breaks out of the trendline and closes a daily candle above the $0.19-level, there is a strong possibility that it could see a massive 32% upside move.

On the other hand, if DOGE’s price fails to sustain itself above the $0.19-level, the consolidation may continue further.

Worth noting, however, that DOGE’s 200-day Exponential Moving Average (EMA) on the four-hour timeframe has been trading above the memecoin’s price. This indicated that the asset may have been on a short-term downtrend.

On-chain metrics flash bullish signals

Given the prevailing market sentiment, traders and investors have shown strong interest in the memecoin, with some taking long positions and others accumulating tokens. 

DOGE outflows worth $10.90 million!

Coinglass’s Spot inflow/outflow data revealed that exchanges across the crypto landscape saw significant outflows of $10.90 million in DOGE. Such a substantial outflow, recorded within 24 hours, potentially hinted at accumulation by whales and investors amid the price dip.

Source; Coinglass

Such a notable outflow ahead of a breakout is a bullish sign and may lead to a hike buying pressure and further upside momentum.

$27.5 million worth of bullish bets

Meanwhile, traders have been strongly betting on long positions. At press time, $0.1776 was the key level where traders seemed to be heavily over-leveraged, with $27.47 million worth of long positions built.

On the other hand, $0.1868 could be another over-leveraged level on the upper side. One where traders built $14.89 million worth of short positions.

Source: Coinglass

When combining these on-chain metrics with DOGE’s price action, it WOULD seem that bulls have been dominant lately. It could also allude to potential upside in the near term.