Dogecoin’s price movement is consistently noting positive growth, and its future outlook appears quite optimistic. According to analyst Ali Martinez, Dogecoin ($DOGE) is on its way to a parabolic bull run influenced by the activity of both retail and institutional investors.
Ali states that the price trajectory of Dogecoin is looking like a historic breakout, as whales and retailers accumulate the coin.
However, the coin is yet to enter the overbought territory, suggesting there is more to come in the coming weeks. In recent weeks, Ali cites that large-scale investors have reportedly stuck to DOGE instead of Bitcoin (BTC).
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Technical Analysis Indicates Room for Growth
Looking from a technical standpoint, though DOGE has surged close to 360% from previous lows, momentum indicators suggest it’s yet to precipitate into overbought territory.
For instance, the Money Flow Index (MFI) is at neutral 55.94, hence strong investor interest with the risk of any imminent correction.
The healthy balance between buying pressure and price movement indicates Dogecoin still has scope for huge gains.
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Martinez says Dogecoin’s price action seems to be in a parallel channel, a technical pattern that may be dictating further movement.
A strong level of the channel’s lower boundary became a base of the rebound for the token. Based on this pattern, Martinez puts Dogecoin as a possibility to reach $2.40 in the near term and long-term resistance at $18.
Dogecoin is now consolidating around its recent highs in a price range of around $0.3751. The 4-hour chart reflects a mini-trend taking shape, where it appears the range is about to break out.
If DOGE can break clear of the resistance at $0.38, the next leg of the rally could be on its way to Martinez’s first target of $2.40.
Retailers Join the Dogecoin Frenzy
It was whales that helped push Dogecoin’s rally, but with retail investors catching on, it could grow further. The popularity of Dogecoin among everyday traders has grown more than ever.
As the Dogecoin price moves, this grassroots enthusiasm has been a historical factor, driving spikes when it occurs. Its trading metrics also hint at a retail interest in Dogecoin.
DOGE has had a notable bounce in market cap, with its market cap now $55.08 billion, a 3.82 percent increase in 24 hours according to CoinMarketCap.
The fact that there’s also been a surge in activity indicates that retail traders are playing a significant role in the token’s momentum, which fits right into the cycle of wider token adoption within the crypto space as a whole.
On the surface Martinez’s price predictions of $2.40 and $18 may sound a bit lofty, however, the current market dynamics become the reason why these targets may materialize.
As a coin that has seen historic bull runs time and time again, Dogecoin’s bull runs continue to do the unexpected, a combination of technical factors, market sentiment plus strong community backing.
The coin’s budding rally is no different and several indicators suggest the coin’s upward trajectory is far from over.
For Dogecoin to break out of the range it’s trapped in, it would have to sustain buying and lead to a $2.40 all-time high. The $18 target is a long-term projection, which would likely be based on market conditions beyond Bitcoin.
