Dogecoin is currently seeing reasonable upside following the Bitcoin recovery above $71,000. This has sent the whole crypto market into a state of euphoria, and the DOGE price has crossed the $0.16 resistance while at it. This bullish trend is expected to continue, as one analyst points out that Dogecoin has formed a bullish triangle pattern.
Dogecoin Triangle Pattern Points To More Upside
In a TradingView post, crypto analyst Lingrid pointed out an interesting formation on the Dogecoin chart. According to the analyst, the meme coin has successfully formed a triangle pattern, which has been historically bullish for the price.
Explaining how this came to be, the crypto analyst explained that the market has been consolidating below the upper border of the triangle. Now, this triangle pattern often leads to a price squeeze, which is very bullish for its price.
Lingrid identified a range zone for Dogecoin just above $0.15, which was important to the formation of the triangle. This is because the appearance of a range zone suggests that accumulation is going on and it is time for the price to begin to move. Sometimes, this can be either bearish or bullish, but as the crypto analyst points out, with the “consolidating just below the upper border of the triangle,” this time around, it is bullish for the price.
Additionally, the meme coin has been creating higher lows, suggesting that this is a sustained bullish trend. “If the price breaks through the downward trendline, we can expect a bullish rally to follow. Furthermore, if the price breaks through the range zone and closes above it, it’s likely that the market will move higher. My target is resistance at 0.17500,” Lingrid states.
DOGE Remains Bullish
This week, the Dogecoin price has turned rather bullish as investor interest has turned toward the meme coin. One way that this is shining through is the trading volume of the digital asset which has jumped more than 130% in the last week. Currently, Coinmarketcap data shows a more than 132% increase in trading volume which has sent it to almost $2 billion at the time of writing.
At the same time, there has been a significant increase in the Dogecoin open interest, suggesting that traders are now betting big on the DOGE price. Coinglass data shows that in the last 24 hours, there is an 18% increase to reach $921.4 million. This is the highest that the open interest has been in the past month and shows a turn in the tide from the bearish trend. Historically, an increase in open interest has usually correlated with an increase in price. So, in this case, it is expected that the price rally will continue.
For now, DOGE bulls continue to dominate the market, pushing it over 8% in the last day. It is currently trading at $0.164, which is a 122% increase in the last year.
Featured image from Dall.E, chart from Tradingview.com
