• Dogecoin’s price has been rising since Elon Musk acquired Twitter Inc. last year, forming a falling wedge which usually signals that the trend will resume.
• The 200W MA has supported the price in the past two days, breaking out of the multi-week falling trend.
• Crypto analysts believe the next probable trend in Dogecoin will be a multi-week consolidation before the next bull market takes place.
Elon Musk’s acquisition of Twitter Inc. late last year has caused a surge of interest in Dogecoin, the meme-based cryptocurrency. The Dogecoin price has been on a steady rise ever since, forming a typical falling wedge pattern usually seen as a sign that the trend will continue in the future.
The 200-week moving average (MA) has supported the Dogecoin price in the past two days, helping it break out of the multi-week falling trend. Market analysts believe that the Dogecoin price could soon rally beyond its October highs of around $0.159. However, this narrative could be invalidated should the price fall below the trend line support.
At the time of writing, Dogecoin is trading around $0.084497 and has recorded a gain of 18 percent in the past 14 days. The ninth-largest digital asset has a market capitalization of approximately $11,649,383,387 and a 24-hour trading volume of about $526,969,058. Furthermore, Dogecoin has seen total liquidations of approximately $1.61 million in the past 24 hours according to aggregate data provided by Coinglass.
Crypto analysts predict that Dogecoin will go through a multi-week consolidation period before the next bull market takes place. This consolidation pattern has been seen in the past two bear markets that Dogecoin has experienced, first between 2014-2017 and then again between 2018-2020. We can expect Dogecoin to remain relatively stable during this period, giving investors the opportunity to enter at a good price point.
Overall, Dogecoin has seen a promising surge in price recently and is now making a case for itself as a legitimate cryptocurrency investment. With the 200-week MA supporting the price and a multi-week consolidation period on the horizon, the future looks bright for Dogecoin.