It is believed that Dogecoin (DOGE) is poised to resume its uptrend after undergoing a prolonged consolidation phase.
Following Donald Trump’s election victory, the leading meme cryptocurrency experienced a surge of 220%, climbing from $0.15139 to $0.48434. This increase was fueled by speculation that the incoming administration might favor cryptocurrency. However, the rally has recently stalled, with DOGE surrendering some gains to trade at approximately $0.38429. Analysts now suggest that the asset is primed for another upward movement.
Dogecoin (DOGE) Ready for Uptrend Resumption?
Crypto trader Olivier Đ X has indicated that Dogecoin’s price is preparing to reverse its trend upward. This observation was shared in an X post on Tuesday, December 17. The analysis highlights a breakout from a descending channel on DOGE’s 4-hour candle chart, with the meme coin expected to resume its uptrend after surpassing resistance near the $0.4140 mark. This breakout pattern may evolve into an ascending triangle, further supporting bullish momentum.
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Olivier Đ X’s views are echoed by other analysts, including The Cryptomist, who pointed out that DOGE is forming an ascending triangle pattern on its daily candle chart. This pattern is often associated with significant upward price movements. While specific price targets were not disclosed, Javon Marks has proposed that DOGE could surpass its all-time high of $0.73, with long-term projections reaching as high as $3.
Shifting Sentiment Around Dogecoin (DOGE)
Recent data indicates that investor sentiment toward DOGE has turned negative. According to metrics shared by Ali Martinez via Santiment Feed, DOGE’s weighted sentiment dropped sharply from nearly five on Santiment’s scale in mid-November 2024 to -0.6. Additionally, social mentions of the asset have plummeted, falling from over 3,200 to fewer than 300.
Historically, overwhelming negative sentiment has been interpreted as a contrarian indicator by Santiment Feed, suggesting that DOGE’s downturn could signal the potential for a strong rebound.
As analysts continue to observe the evolving patterns on Dogecoin’s charts, a clearer picture of its trajectory is expected to emerge in the coming weeks.
