Crypto analysis: Is Dogecoin all set for a bull run?

 Crypto chart analysis (Dogecoin):

According to Coinglаss, Dogecoin’s OI in thе futurеs mаrkеt incrеаsеd from $442.37 million on Sеptеmbеr 7 to $501.42 million by Sеptеmbеr 14, rеflеcting а rising numbеr of trаdеrs еntеring thе mаrkеt. 

Dogecoin chart analysis

 

Dogecoin's price is getting close to the upper trendline of a falling wedge pattern. This pattern has been forming since early March, marked by connecting several high and low levels. As of Friday, Dogecoin is trading at around $0.106. If Dogecoin manages to break above this upper trendline and closes above the 50-day Exponential Moving Average (EMA), which is also around $0.106, it could signal a new upward trend.

If this breakout happens, Dogecoin has the potential to rally by 33% from its current price, reaching up to $0.141. This optimistic outlook is supported by the Moving Average Convergence Divergence (MACD) indicator, which shows a bullish crossover on the daily chart. The MACD line, represented by a blue line, is trading above the signal line, shown by a yellow line. This indicates that buyers are active, and the green histogram bars rising above the neutral zero line suggest increasing bullish momentum.

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Crypto analysis: Dogecoin is exhibiting a positive outlook following a series of stable sessions

Further supporting this positive view is on-chain data. Coinglass shows that the DOGE long-to-short ratio has reached 1.16, the highest in almost a month, flipping above 1 on Friday. This means more traders are betting on Dogecoin’s price to rise. Additionally, Santiment’s Age Consumed index, which tracks the movement of dormant tokens, also aligns with the bullish technical perspective. Spikes in this index often indicate that previously inactive tokens are on the move, typically a sign of upcoming price increases.

However, despite these positive signs, there is still a risk. If Dogecoin’s daily candlestick closes below $0.088, it would invalidate the bullish outlook. In this case, Dogecoin's price could drop by 11%, potentially falling to its weekly support level at $0.078. Therefore, while the technical analysis and on-chain metrics are currently showing a promising trend for Dogecoin, caution is advised.