Why Is The Dogecoin (DOGE) Price Up Today? 

Dogecoin Price is surging today amid speculations that Elon Musk will use DOGE in the upcoming X Payments platform.
Dogecoin (DOGE) Price Today

NOIDA (CoinChapter.com)— Dogecoin price is slowly recovering from its over 8% drop on July 7, though the recovery seems to be slow. However, a bullish technical setup and some bullish market sentiment could help the memecoin continue its uptrend.

DOGE prices dropped in the past 24 hours before recovering and posting gains.

Market Sentiment Bullish For Bitcoin

Dogecoin’s current market situation presents several bullish indicators. The data reveals that 73.25% of addresses holding DOGE are in profit, showcasing strong market sentiment and confidence among holders.

The high percentage of profitable addresses suggests a solid foundation for future price movements.

Additionally, the distribution of DOGE holdings among various wallet sizes indicates increasing interest from larger investors. Wallets holding between 10 million to 100 million DOGE have shown a steady rise in their share.

The trend highlights the accumulation of DOGE by significant investors, often a precursor to bullish market behavior.

The current price of DOGE provides substantial support, with 4.66 million addresses in profit at this level. This support level likely generates further buying pressure, enhancing the potential for upward price movement.

Dogecoin Price today DOGEUSD
DOGE supply distribution by balance of addresses. Source: Santiment

Moreover, the accumulation by large holders, particularly those holding between 100 million and 1 billion DOGE, further strengthens the bullish outlook. The accumulation trend signals a strong belief in future price appreciation and adds to the positive market sentiment.

DOGE Price Up Today As Token Rebounds Off Pattern Support

Another reason why DOGE price was up today could be the token getting close to breaking out of a bullish technical pattern called the ‘Falling Wedge.’

A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.

Dogecoin Price today DOGEUSD
DOGE price formed a bullish pattern with a 63% upside target. Source: Tradingview.com

The pattern typically suggests that an asset’s price, while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs in the direction of the overall trend, which, for a falling wedge, is upward.

To estimate the price target of a falling wedge pattern, traders measure the widest part of the wedge at the beginning of the formation. They then project this distance upward from the point of the breakout to set a potential target.

An accompanying increase in trading volume can further confirm the reliability of the breakout. Higher volume during the breakout suggests stronger market conviction, supporting the likelihood of a successful price reversal.

According to the rules of technical analysis, the Dogecoin price could rally over 69% to reach the pattern’s theoretical price target near $0.18.

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