Dogecoin has been missing in action lately, with no significant price moves. This has largely been due to the low volumes in the altcoins market. Bitcoin has been the biggest gainer lately, and seems to have taken the mojo off altcoins. However, from a look at the market today, this could change as more altcoins are beginning to show some significant gains, with outliers like Bitcoin SV gaining by over 50% in under 24-hours. In this period, Dogecoin hasn’t shown any significant moves but from the charts, it could be up for some major gains.
That’s because, on the weekly charts, Dogecoin is forming a bullish continuation pattern. After a significant bullish rally three weeks ago, Dogecoin (DOGE) has retraced for the last two weeks. However, this retracement has failed to clear the last bullish candle that saw Doge close at $0.0031074. This is a strong indicator that bulls still have control of Dogecoin, in spite of the recent retracement in the entire altcoin market. It’s a good indicator that Dogecoin could be up for some major gains at some point next week, based on its current price action.
There are several factors that could possibly propel Dogecoin upwards based on its current price action. The first is a continuation of the Bitcoin rally. Traditionally, Dogecoin (DOGE) and pretty much all altcoins have followed Bitcoin (BTC)’s lead. In fact, it was the reason why Dogecoin (DOGE) was on a positive trajectory for close to a month before its recent retracement. Bitcoin rallied from under $4k to over $8200 and pulled everything with it, albeit in a small way.
At the moment, Bitcoin is facing key resistance on the $8k level, and seems to be slowing down around $7800 – $7900. Dogecoin’s price action could be a pointer of Bitcoin’s next move, and that’s a strong break above $8000 with a possible target of $9500 to $10,000. In such a scenario, Dogecoin (DOGE) could experience a huge upside break in value, and a continuation of its recent bullish trend.
Besides that, Dogecoin (DOGE) still remains one of the most practical cryptos for business. It is low cost, fast, and is not as volatile as most altcoins. This means that over and above the Bitcoin driven FOMO, the value of this crypto will continue to be driven by its growing adoption. The more people continue using Dogecoin (DOGE) for payments, the more its demand is likely to grow, and by extension, its value. In essence, no matter how its price action plays out in the short-term, Dogecoin’s long-term trajectory is upwards, just like that of other major cryptos like Bitcoin (BTC).
Dogecoin (DOGE) investors have a lot to look forward to in the long run. They are holding a heavily undervalued, when viewed from the context of its growing adoption by merchants. It’s a crypto that may seem like a joke to those who don’t understand it, but one with some amazing fundamentals to keep pushing it upwards. The future of Doge is bright.