A leading crypto analyst has further expressed their confidence that Dogecoin could be set for a bullish run in the current market cycle. This comes thanks to renewed buyer interest in the coin following its recent drop.
Rising Volume Signals Strong Demand for Dogecoin
In an X post, Crypto analyst Emilio Crypto Bojan described the latest drop in DOGE as a “generational entry” point. According to Bojan, trading volume began rising soon after the coin hit its low point, suggesting that many investors bought the dip rather than selling.
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The meme coin fell by about 14% to $0.07763 during last week’s high-volatility period, when Bitcoin fell to $59,000. Bojan considers this a perfect moment to buy this coin at a low price.
Since then, DOGE has recovered to around $0.08529. The coin has also maintained strong interest among traders, with a 24-hour trading volume of about $812.7 million and a market value of roughly $14.5 billion.
Analysts are now closely watching the $0.099 price level. This is seen as an important resistance point for Dogecoin. Bojan believes that if the meme coin can move above $0.099 and stay there, it could confirm that buyers have regained control of the market. He expects the cryptocurrency to “pump hard” after reclaiming that level.
Meanwhile, data from Santiment shows that wallets holding between 100 million and 1 billion DOGE have been reducing their holdings in recent weeks. These wallets now control 23% of Dogecoin’s circulating supply. The decline marks the lowest level in five months.
At the same time, wallets holding more than 1 billion DOGE, which are often associated with crypto exchanges, have increased their share of the circulating supply. Their holdings have risen to 47%, suggesting high activity among retail investors.
Bullish DOGE Sentiment Builds Up Among Analysts
Another analyst, Trader Tardigrade, recently pointed to a chart pattern that mirrors Dogecoin’s historic bull cycle. The analyst noted that the coin appears to be repeating the same sequence seen between 2014 and 2017, where the coin went through a long consolidation period, followed by a falling wedge formation and then a breakout.
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During the previous cycle, DOGE rallied by an astonishing 29,000% after the pattern was completed. Trader Tardigrade believes the current market structure looks quite similar, raising expectations that another powerful move could be developing.
Adding to the bullish outlook, Ali Martinez noted that Dogecoin recently reached his target price of $0.0883. He said the meme coin is now testing the lower boundary of its current trading channel, which could determine its next move.
As long as the coin remains above this support level, the analyst believes a recovery toward $0.1019 and possibly $0.1156 remains likely. At press time, the coin was valued at $0.08522, according to data from CoinMarketCap.
Featured image from Pngtree, chart from Tradingview.com