Analyst: Dogecoin Still in Bullish Phase, Key Levels to Determine Its Future

Dogecoin (DOGE) has been experiencing substantial   price decline over the past month as the wider market trends continue to have impacts on the asset. Its drastic price decrease has raised questions about its next movement in a market gripped by selling pressure. Today, Crypto analyst, Trader Tardigrade, commented that Dogecoin’s bullish phase is still on after intense price fluctuations strike the wider crypto market.

DOGE forms Dargonfly Doji pattern

In a post on X, the analyst pointed out a formation of a Dargonfly Doji pattern on the DOGE’s daily timeframe. This pattern normally emerges after a downward momentum and is broadly regarded as an upward trend signal. It signifies that despite the decline triggered by sellers, buyers appear coming in and DOGE could be   preparing for a recovery. The formation of this pattern is an indication that the meme coin is on the verge of a price jump.

Also, the analyst stated that DOGE’s price movement aligns with the Mean Reversion theory. According to this theory, over time, asset prices tend to pull back toward their past average price movements.

As per the analyst, DOGE’s current downturn is a retracement to its historical price averages, as highlighted by this theory. Despite recent drop, the meme coin could be primed for an upturn, possibly going back to higher levels.

DOGE price updates

Dogecoin has been facing extensive selling pressure lately. The asset’s price has been down 24.4% and 7.8% over the past month and seven days ago. Its value is currently trading at $0.1876, after seeing a decline of 3.8% over the past 24 hours. However, these figures shows that the downtrend is losing strength as buyers entering the market. This price movement suggests that the asset is likely to witness as an upswing as market sentiment shifts towards bullishness and buyers gradually coming in.

A key on-chain indicator showing DOGE’s imminent rise is Open Interest (IO). Over the past 24 hours, Dogecoin’s IO rose by 2.73% to $1.74 billion, indicating growing interest from traders who are creating positions in the asset. This surge in Open Interest suggests that traders and investors are accumulating the asset, having confidence in its growth potential.

If buyers can continue seizing the market dips and accumulating DOGE, this could enable the asset’s price to climb to the major resistance levels of $0.2050 and $0.2120. Reaching these levels would confirm a bullish trend.