-
Dogecoin (DOGE) spearheads the meme coin resurgence with a remarkable 32% weekly gain, driven by strong bullish momentum despite increased selling from long-term holders.
-
The coin’s technical indicators, including a perfect 100% Aroon Up reading, underscore sustained upward price action within an ascending parallel channel.
-
According to COINOTAG, DOGE’s price trajectory suggests potential to reach $0.33 if buying pressure continues, while a drop to $0.23 remains possible if demand weakens.
Dogecoin leads meme coin rally with a 32% weekly surge, backed by strong bullish momentum and technical indicators signaling potential gains up to $0.33.
Dogecoin’s 32% Weekly Rally Highlights Strong Market Momentum
Dogecoin has emerged as the top performer among meme coins this week, registering a 32% increase in value to trade around $0.2743. This surge occurs amid a broader crypto market upswing, with the meme coin sector’s capitalization hitting a 30-day peak of $85.28 billion. Despite this rally, on-chain metrics reveal that long-term holders are increasingly liquidating their positions, as indicated by a rising Liveliness metric. This divergence between price strength and holder behavior reflects a complex market dynamic where short-term traders are capitalizing on momentum while seasoned investors take profits.
On-Chain Data Reveals Long-Term Holder Activity Amid Price Surge
Glassnode’s Liveliness metric, which measures the movement of long-held tokens, rose to 0.706 on July 20, marking a 0.14% increase since July 13. This uptick signals that long-term holders are actively moving or selling DOGE, a behavior often associated with profit-taking. Typically, a declining Liveliness suggests accumulation and bullish sentiment, but the current rise indicates cautiousness among veteran investors. This nuanced insight helps explain why DOGE’s price remains robust despite increased selling pressure from this cohort.
DOGE Liveliness. Source: Glassnode
Technical Indicators Confirm Sustained Bullish Momentum for DOGE
DOGE’s price action is further validated by its Aroon Up indicator, which stands at a perfect 100%. This technical tool measures the strength and direction of a trend by tracking the timing of recent highs. A 100% reading indicates that DOGE has consistently reached new highs throughout the indicator’s lookback period, reinforcing the presence of strong bullish momentum. This aligns with DOGE trading at price levels last seen in February, suggesting a potential breakout phase for the meme coin.
DOGE Aroon Up Line. Source: TradingView
Ascending Parallel Channel Signals Potential Price Targets
Analyzing DOGE’s daily chart reveals that the coin is trading within an ascending parallel channel—a pattern characterized by parallel upward-sloping trendlines that act as dynamic support and resistance. This formation indicates a steady uptrend marked by higher highs and higher lows. Should buying pressure persist, DOGE is positioned to breach the $0.28 resistance level and potentially climb to $0.33. Conversely, a weakening demand could see the price retrace to the channel’s lower boundary near $0.23, underscoring the importance of monitoring volume and market sentiment closely.
DOGE Price Analysis. Source: TradingView
Market Sentiment and Future Outlook for Dogecoin
The current market environment suggests that Dogecoin’s rally is primarily driven by short-term traders capitalizing on momentum, while long-term holders adopt a more cautious stance by taking profits. This dual dynamic creates a delicate balance that could influence DOGE’s near-term trajectory. Investors should watch key technical levels and on-chain metrics to gauge whether the bullish trend will sustain or if a correction is imminent. Staying informed and agile will be crucial for navigating this evolving meme coin landscape.
Conclusion
Dogecoin’s impressive 32% weekly gain highlights its role as a leading meme coin amid a broader market rally. Despite profit-taking by long-term holders, strong technical indicators like the 100% Aroon Up and the ascending parallel channel pattern support continued bullish momentum. While $0.33 represents a realistic upside target, traders should remain vigilant for potential pullbacks to $0.23 if buying interest diminishes. Overall, DOGE’s price action underscores the importance of combining on-chain data with technical analysis to make informed investment decisions in the volatile crypto market.
