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Dogecoin (DOGE) Breakout Could Lead to a 21% Price Increase

2 mins
Updated by Ryan James
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In Brief

  • Dogecoin’s price is breaking out of an ascending triangle pattern, suggesting a rally is on the cards.
  • The recent rally resulted in nearly $7 million worth of short liquidations, the largest in two months.
  • Nearly $1.28 billion worth of DOGE is awaiting profits, which might drive the rally to $1.82.
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Dogecoin’s (DOGE) price is primed to see gains as the recent increase in price has triggered recovery.

The short liquidations observed in the last 24 hours have generally been followed by a rise, which might also be the case this time.

Will Dogecoin Bears Step Back?

Dogecoin’s price rose by 11% in the past day when the entire crypto market rallied, bringing the meme coin to trade at $0.163. This led to the traders who were pining for a price fall losing their money, as evident in the short liquidations worth nearly $7 million.

This is the largest single-day short liquidation in more than two months. Historically, such large liquidations have seen rises in the following days, and the same is anticipated presently. This liquidation may also result in the bears backing off as investors await a rally.

Dogecoin Liquidation.
Dogecoin Liquidation. Source: Coinglass

Investors’ optimism is fueled by the $1.28 billion worth of profits they will witness. According to the Global In/Out of the Money (GIOM) indicator, about 7.87 billion DOGE were bought between $0.16 and $0.18.

This supply could turn profitable soon since Dogecoin’s price is exhibiting bullish signs. However, this would warrant a breach of the $0.16 resistance level. Since DOGE holders are close to noting such huge profits, they will likely act accordingly until the altcoin hits $0.18.

Read More: How To Buy Dogecoin (DOGE) and Everything You Need To Know

Dogecoin GIOM.
Dogecoin GIOM. Source: IntoTheBlock

This will likely drive the rally.

DOGE Price Prediction: Where Will the Rise Stop?

Dogecoin’s price has moved within an ascending triangle pattern for the past month. The ascending triangle pattern is a bullish continuation pattern characterized by a horizontal resistance line and an upward-sloping trendline. It indicates that buyers are gradually gaining strength, often leading to a breakout above the resistance level.

DOGE is breaking out of this pattern at the time of writing, with volumes declining consistently. However, the pattern will be validated when the meme coin marks a 22% rally to reach $0.20. This crucial price point has been marked as a target per the pattern and also stands as key psychological support.

Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030

Dogecoin Price Analysis.
Dogecoin Price Analysis. Source: TradingView

However, the more practical outcome would be Dogecoin’s price breaching $0.18, making the aforementioned supply profitable.

On the other hand, failure to breach $0.16 could lead to a fallback into the pattern. This would turn the breakout into a fakeout, and further decline could send DOGE to $0.15 or lower. Consequently, the bullish thesis would be invalidated.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...