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- 1 Dogecoin has exhibited a bullish breakout from a notable pattern on the daily chart.
- 2 The weighted sentiment curve rose above the zero mark, signaling a shift to bullish overall sentiment.
Dogecoin (DOGE) has been diligently striving to emerge from a downward trend that began at the onset of April 2024. This downturn resulted in a price decline exceeding 41% from its peak levels in April.
Nonetheless, the market sentiment has shifted, with the bulls regaining over 30% of the lost value. Recently, Dogecoin has achieved a breakout from a significant pattern. Moreover, the weighted sentiment curve has transitioned from negative to positive, suggesting an upward trend.
Let’s delve deeper into this development and explore the potential upper levels Dogecoin might reach with ease.
DOGE Crypto: Weighted Sentiment Turned Bullish
As per the data obtained by a financial analytics platform app.santiment.net, there has been a notable shift in investor sentiment for Dogecoin. The weighted sentiment curve has moved from a bearish to a bullish stance, crossing the zero threshold to signal a positive outlook that could continue to rise.
Moreover, this curve represents the collective inclination of investors and traders. It serves as an indicator of market dominance, revealing whether the bulls (positive sentiment) or the bears (negative sentiment) are in control. A positive weighted sentiment indicates a prevailing bullish mood, while a negative one suggests a bearish trend in the cryptocurrency market.
Is Dogecoin Preparing for a Bull Run?
From a price point of view, Dogecoin is on the mend, steadily climbing and establishing higher lows. A positive trendline has provided support, resulting in the formation of an ascending triangle pattern on the daily chart.
The recent close above the upper resistance of this pattern has confirmed its breakout. Looking ahead, short-term traders and investors might target a 20% profit before potentially encountering another downturn.
On the flip side, a close below the $0.160 mark could invalidate this bullish pattern, potentially leading to a reversion to the previous downward trend.
Indicators such as the MACD and RSI are currently signaling optimism for the short term, suggesting that Dogecoin’s upward trajectory could persist.
Conclusion
Dogecoin is recovering from a significant April downturn, after experiencing a drop of over 41% in April. However, a shift in market sentiment has recovered over 30%. Furthermore, a breakout from an ascending triangle pattern on the chart and a bullish turn in the weighted sentiment curve suggest positive momentum. Data from app.santiment.net confirms this investor sentiment shift.
Now, If Dogecoin maintains above $0.160, it could see further gains, with short-term targets around 20% higher. Indicators like MACD and RSI support this optimistic short-term outlook, although a drop below $0.160 could signal a return to the bearish trend.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
