DOGE Day and Bitcoin Halving Optimism Drive Dogecoin Prices Up…
- Despite the bullish signals, CVD showed that DOGE price may not reach $0.20 anytime soon.
- Traders are convinced that the currency will be profitable in the long term.
Dogecoin (DOGE) price has risen 6.21% over the past 24 hours after previously falling to $0.14. But analyst Ali Martinez said this could be just the beginning of an uptrend that could last four days.
The Tom DeMark (TD) Sequential indicator on the daily chart gave a buy signal, Martinez said. TD Sequential is a method used to identify trend exhaustion and possible reversal.
According to the chart shared by the analyst, sellers got tired after DOGE hit $0.14. Therefore, the next step had to be a rally.
DOGE Day brings good news
Besides the technical point of view, AMBCrypto cited “DOGE Day” on April 20 as another reason for the coin’s price surge.
We previously reported that Dogecoin’s price could rise ahead of today.
Interestingly, the day the project community planned to celebrate turned out to be a “buy the hype” event at that price.
But will there be a “news selling” effect after this? Cumulative Volume Delta (CVD) has fallen into negative territory, according to Coinalyze.
This trend implied that sellers would likely accept the offer and pay the current market price for the coin. If this continues, DOGE may not be able to rise above $0.20 in the short term.
On the other hand, if CVD increases, buyers may negotiate an offer while sellers may be left out. In this case, the value of the currency may continue to rise until the end of the week.
Additionally, AMBCrypto looked at price prediction from a chain perspective. One of the metrics we looked at first was volume.
Price may decrease
At the time of writing, Dogecoin has risen slightly in the same period that its price has risen. However, it seemed like the increase in volume might not be enough to support a breakout.
Thus, DOGE price may stop at some point before the end of the new week. But if trading volume increases significantly along with the price, the bullish thesis may not be valid.
Additionally, Dogecoin’s total funding skyrocketed to 0.01%. Positive funding means that traders with long positions pay short sellers a commission to keep their positions open.
This indicates bullish sentiment. However, the financing rate can provide insight into possible price movements.
According to DOGE, high levels of positive funding with rising prices suggest that criminals’ long positions are aggressive.
Is your wallet green? Check out the DOGE Profit Calculator
Interestingly, these traders are rewarded for their position. This is bullish for DOGE in the short term. However, if funding declines, the bullish outlook may be invalidated.
But for now, DOGE looks set to rise above $0.16.
This is an automatic translation of our English version.