Dogecoin (DOGE) is once again making waves in the cryptocurrency market as analysts anticipate a potential breakout towards $0.90, fueled by the formation of a second bull pennant pattern. This pattern, identified on the 2-hour price chart, suggests a continuation of the previous bullish trend, with a potential price target of $0.90, as predicted by crypto analyst Trader Tardigrade.
The Market Value to Realized Value (MVRV) ratio for Dogecoin currently stands at 45.65%, indicating that the meme coin still has room for growth before reaching overbought levels. Historically, a level of 78% has marked the peak of DOGE rallies, and with the current ratio well below this threshold, analysts believe there is significant potential for further upside.
Despite the overall bullish sentiment, there are warnings of a possible short-term correction. The TD Sequential indicator has issued sell signals on Dogecoin’s 4-hour, 12-hour, and daily charts, suggesting a temporary pullback may be on the horizon. However, the long-term outlook remains positive, with Dogecoin positioned within a ten-year ascending price channel. This channel indicates the potential for a sustained rally, with price targets of $2.40 and $18 on the horizon.
As of the latest data, Dogecoin is trading at $0.3724, showing a 1.61% increase in the past 24 hours and a 32.76% gain over the last seven days. With a trading volume of $8.3 billion and a market capitalization of $54.7 billion based on a circulating supply of 150 billion DOGE, the meme coin continues to capture the attention of traders and investors alike.
It is important to note that the information provided in this article is for educational and informational purposes only and should not be considered as financial advice. Readers are advised to conduct their own research and exercise caution when making investment decisions in the volatile cryptocurrency market.