Dogecoin price pulled back in the past two consecutive days as the recent crypto momentum faded. The DOGE token was trading at $0.1663 on Thursday, a few points below this week’s high of $0.1797.
Dogecoin token remains significantly higher than August’s low of $0.080 and is a sign that its demand is rising.
This growth has happened across the spot market, where its daily volume has jumped to over $2.2 billion in the past few weeks. It has overtaken some other popular meme coins like Dogwifhat and Pepe, which are seeing robust volume growth.
Dogecoin’s future open interest has also continued rising and is hovering near its highest level since April. This is a sign that the substantial futures market is doing well as investors prepare for the next big bull run.
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Dogecoin has three potential catalysts in the upcoming months. First, it will likely benefit when Bitcoin finally breaks out above its all-time high. The odds of this bull run happening ahead or after the general election are substantially high.
Second, Dogecoin will benefit from the ongoing greed in the crypto market. After falling to the fear zone of 36 earlier this month, the fear and greed index has jumped to the greed area of 68. In most periods, Dogecoin and other meme coins do well when there is a sense of greed in the market.
Dogecoin price has strong technicals
DOGE chart by TradingView
The other big catalyst for Dogecoin is its strong technicals. As shown above, the token has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have formed a bullish crossover pattern. In most periods, this pattern usually leads to more upside.
Dogecoin has also formed a cup and handle pattern, which is one of the most popular bullish signs in the market. It has just slipped slightly from the upper side of this pattern. The coin has also remained above the 50% retracement point.
Therefore, the path of the least resistance for the DOGE token is bullish, with the next point to watch being the year-to-date high of $0.2291, its highest point this year. If this happens, it means that it will rally by over 37% from the current level.
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