Dogecoin (DOGE) Surges, Analysts See Potential for Another Sharp Rise

Dogecoin (DOGE) surged last week, driven by Elon Musk's influence and growing interest in meme coins. This rise has traders questioning if DOGE can match its 2020-2021 rally

Dogecoin (CRYPTO: DOGE) price surged last week, largely influenced by Elon Musk and the growing interest in meme coins. This price rise had traders wondering if DOGE could match its 2020-2021 rally, which saw the coin surge astronomically following Musk’s support.

At press time, DOGE price noted a 31.20% increase over the past seven days and a 2.78% rise in the last 24 hours, trading at $0.1471.

Is ‘DOGE Season’ Coming? Falling Wedge Signals A Breakout

Crypto analyst Trader Tardigrade recently highlighted a potential bullish pattern forming on Dogecoin’s monthly price chart. This Falling Wedge pattern is usually indicative of a price breakout, which could explain the recent price surge.

“Season of DOGE begins,” wrote Tardigrade, hinting at further gains if the pattern continues to hold.

Meanwhile, crypto analyst Dima James Potts pointed out that Dogecoin’s price chart showed a striking resemblance to its pattern during the 2021 breakout. According to Potts, DOGE price could be setting up for another parabolic rally.

Potts highlighted that Dogecoin’s price has followed a three-year cycle, where the coin’s price increased by 1.5 times in 2016 and 2.5 times in 2020. If this pattern continues, Dogecoin could reach $0.31 by the end of 2024.

Potts further speculated that if the rally continues into 2025, DOGE could hit $10, although this projection is heavily dependent on market conditions.

Potts’ price projection is based on Dogecoin’s past price surges, where the coin witnessed gains of 9,000% in 2017 and 18,000% in 2021.

Bullish Sentiment Grows as Large Holders Jump In

Apart from technical analysis, the overall market sentiment for Dogecoin was turning increasingly bullish. According to Coinglass, the Dogecoin long/short ratio stood at 1.02%, indicating that the majority of traders were taking long positions on the coin.

Furthermore, data from IntoTheBlock highlighted a massive surge in large holder inflows, which skyrocketed by 2,522.34% in the past week, increasing from 42.71 million to reach 1.12 billion.

Open Interest Surges to $1.05B, TVL Hits a Three-Month High

Another metric that supported Dogecoin’s bullish outlook was its Open Interest, which surged to reach $1.05 billion.

Additionally, Dogecoin’s Total Value Locked (TVL) reached a three-month high of $4.82 million, indicating increased participation within the Dogecoin ecosystem.

While the future remained uncertain, the technical and market data suggested that Dogecoin could have more room to grow. Whether it will be able to match its 2021 rally, which saw the coin surge astronomically, remains to be seen, but investors and analysts will be keeping a close watch in the upcoming months.