Will Dogecoin Price Rally 32%? Bullish Divergence Suggests Big Move

Dogecoin (DOGE), the world’s biggest meme coin with a market cap of over $13.35 billion is poised for a significant upside rally. On a daily chart, DOGE is flashing a bullish divergence in the Relative Strength Index (RSI), indicating a potential trend reversal from a downtrend to an uptrend. 

Bullish Divergence in Dogecoin

Since the beginning of August 2024, DOGE has been forming a lower low, while the technical indicator RSI has been making higher lows. This indicates that the selling pressure that DOGE has been experiencing for a longer period could decrease in the coming days. Traders and investors see bullish divergence as a potential buy signal. 

Dogecoin Price Prediction 

According to expert technical analysis, DOGE is currently at a crucial support level of $0.095. Additionally, it is trading above the 200 Exponential Moving Average (EMA) on a weekly time frame, indicating it is in an uptrend. 

Based on the historical price momentum, whenever the DOGE price reaches to this support level it typically sees an upside rally of 15% to 20%. However, due to the bullish divergence, there is a high possibility that it could soar by 32%, reaching up to the $0.128 level this time. 

Bullish On-Chain Metrics

If the sentiment remains bearish and DOGE fails to hold the $0.0956 level or 200 EMA, nearly $4.78 million worth of long positions will be liquidated. Conversely, if the sentiment shifts and the price rises to the $0.103 level, approximately $22 million worth of short positions will be liquidated. 

The trading bets by short sellers are nearly 4 to 5 times higher than bulls’ long positions, which simply indicates the dominance of the bears. 

Rising Open Interest and Price Momentum