A leading crypto analyst has further expressed confidence that Dogecoin could make a bullish run in the current market cycle. This is due to buyers’ renewed interest in the coin after its recent decline.
Rising volume indicates strong demand for Dogecoin
In one X messageCrypto analyst Emilio Crypto Bojan described DOGE’s latest decline as a “generational entry point.” According to Bojan, trading volume started to increase shortly after the coin bottomed, indicating that many investors were buying the dip rather than selling.
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The meme coin fell about 14% to $0.07763 during last week’s period of high volatility, when Bitcoin fell to $59,000. Bojan sees this as a perfect time to buy this coin at a low price.
Since then, DOGE has recovered to around $0.08529. The coin has also maintained strong interest among traders, with a 24-hour trading volume of approximately $812.7 million and a market value of approximately $14.5 billion.
Analysts are now watching it closely the price point of $0.099. This is seen as a major resistance point for Dogecoin. Bojan believes that if the meme coin can rise above $0.099 and stay there, it could confirm that buyers have regained control of the market. He expects the cryptocurrency to “pump hard” after regaining that level.
In the meantime, facts van Santiment shows that wallets with between 100 million and 1 billion DOGE have reduced their holdings in recent weeks. These wallets now control 23% of Dogecoin’s circulating supply. The decline marks the lowest level in five months.
At the same time, wallets with over 1 billion DOGE, which are often associated with crypto exchanges, have increased their share of the circulating supply. Their holdings have increased to 47%, indicating high activity among retail investors.
Bullish DOGE sentiment among analysts is increasing
Another analyst, Trader Tardigrade, recently pointed out a chart pattern that reflects Dogecoin’s historical bull cycle. The analyst noted that the coin appears to be repeating the same streak seen between 2014 and 2017, when the coin went through a long consolidation period, followed by a falling wedge formation and then a breakout.
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During the previous cycle DOGE rallied through an astonishing one 29,000% after the pattern was completed. Trader Tardigrade believes that the current market structure appears quite similar, raising expectations that a new powerful move could develop.
Adding to the bullish outlook, Ali Martinez noted that Dogecoin recently reached its price target of $0.0883. He said the meme coin is now testing the lower limit of its current trading channel, which could determine its next move.
As long as the coin remains above this support level, the analyst believes a recovery towards $0.1019 and possibly $0.1156 remains likely. At the time of writing, the coin had a value of $0.08522 facts from CoinMarketCap.
Featured image of Pngtree, chart from Tradingview.com