Dogecoin’s bullish rally may trigger memecoin’s growth by 20%

Over the past 24 hours, the price of the popular Dogecoin meme coin DOGE $0.12 Dogecoin -0.55% Market capitalization $17.97 billion VOL. 24 hours $42.72 million has increased by 11% amid a general rally in the crypto market. This led traders who expected the price of the popular crypto asset to fall to lose their money. The total volume of short liquidations amounted to almost $ 7 million.

This is the largest one-day liquidation of short positions in the last two months. As history shows, after such large-scale liquidations, the following days saw a rise in prices, which is expected this time. Perhaps now the bears will retreat as investors expect a rally.

Investor optimism is fueled by the expected profit of $ 1.28 billion. According to the Global In/Out of the Money (GIOM) indicator, about 7.87 billion DOGE tokens were bought at a price of $ 0.16 to $ 0.18.

Market analysts note that Dogecoin’s price is showing bullish signs, but this will require a breakout of the $ 0.16 resistance level. Probably, the anticipation of imminent profits will encourage DOGE holders to push the altcoin higher until it reaches $ 0.18. Potentially, this could contribute to the growth of the coin’s value.

Over the past month, the Dogecoin price has been moving within an ascending triangle pattern. This is a bullish continuation pattern characterized by a horizontal resistance line and an ascending trend line. It indicates that buyers are gradually gaining strength, and often this leads to a breakout of the resistance level. However, a more realistic outcome would be for the price to reach $ 0.18, which would bring the aforementioned supply volume into the profit zone.

On the other hand, failure to break through $ 0.16 could lead to a price pullback inside the pattern. This would indicate a false bullish breakout and could send Dogecoin to $ 0.15 or lower. In this case, the positive scenario will be recognized as untenable.