Dogecoin’s price jumped to its highest level in a month, causing growing interest among futures traders.
Of course, some traders remain cautious about the sustainability of this bullish trend, but the overall sentiment is optimistic.
Men’s best friend
Dogecoin’s price went crazy in Saturday, catching the attention of many traders. One of them, behind the pseudonym Shelby, noted in a post on X that Dogecoin looks like preparing for a huge upward move.
$DOGE is breaking out and looks primed for an aggressive up move!
Historically, #dogecoin breaking out has always been a catalyst for #memecoin season: especially for $FLOKI and $SHIB.$FLOKI is looking very interesting here. It has always followed #doge and moved more… pic.twitter.com/f1l68cGfuQ
— Shelby (@CryptoNewton) July 20, 2024
Historically when Dogecoin’s price breaks out, it often triggers similar moves in other altcoins like Floki and Shiba Inu, and if we take a look to Coinmarketcap’s data, we can see both risen by 37% and 3.89% respectively.
Other crypto trading accounts, including Cheds and CryptoBoss, also echoed the possibility of the positive movement, calling it a nice base break.
Because it would be that. Dogecoin now is trading at $0.13, marking an 18% increase over the past week.
Unchained
While some are optimistic, others are less. A trader known as Magnate advised followers to avoid impulsive, speculative buying and wait for pullbacks to secure better prices.
They warned that a 10.6% drop to $0.1194, a price seen just a week ago, could lead to the liquidation of many long positions.
Also worth to considering, in July, Dogecoin’s Open Interest, which measures the total value of all live futures contracts, grew by 19% to $647.19 million over four days.
Greed
The increase in Dogecoin’s price coincides with a general shift in market sentiment.
The Crypto Fear&Greed Index, the sentiment indicator which shows the Bitcoin and crypto market’s state, moved to a “Greed” score of 74 from a “extreme fear” score of 33 just a week earlier. Maybe there is too much optimism.
There is speculation that Dogecoin could replicate its past performance, where it reached an all-time high of $0.73 on May 8, 2021, a year after the previous Bitcoin halving.
It is possible, and if this pattern repeats, Dogecoin might hit a new peak in April 2025.
But, and this is a very big but, given the speculative and hype-based nature of memecoins, applying technical analysis to predict their future is basically unreliable, unusable.
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