Dogecoin Shows Bullish Patterns: Could a Major Rally Be Coming?

• Dogecoin shows strong bullish signals, testing key resistance with rising on-chain activity.
• Increased interest and transaction activity suggest Dogecoin might be gearing up for a major rally.

In a tweet, the popular analyst known as World of Charts highlighted Dogecoin (DOGE), the first meme token in the world, as having a big bullish potential. The analyst’s observation has sparked enthusiasm in the Dogecoin community, indicating that the coin is on the verge of a massive rally.

Bullish Divergence Signals Potential DOGE Breakout

According to World of Charts, DOGE is currently testing a significant resistance level, and the Relative Strength Index (RSI) is indicating a bullish divergence. If successful, this arrangement might rocket DOGE above $0.30, signifying a potential increase of more than 100% from its current price.

Given Dogecoin’s history of unpredictable yet spectacular moves, this prognosis has piqued the interest of both retail and institutional investors alike.

Dogecoin is currently trading around $0.1091, up 1.75% over the last 24 hours and 7.81% over the last week. These advances have pushed Dogecoin’s market cap above $15 billion, indicating that investor interest in DOGE is once again on the rise.

The recent upward momentum, paired with good technical signals, suggests that Dogecoin may be poised for a stunning breakout in the next few days or weeks.

To add to the bullish outlook, recent data show that Dogecoin transaction activity has increased to its highest level in three months. This increase in transactions is especially significant given that it follows a recent price drop, implying fresh interest in DOGE despite market volatility.

According to CNF, the increase in transaction volume suggests that traders and investors are collecting DOGE in anticipation of a possible rally. Increased on-chain activity has historically predicted major price changes for Dogecoin, making this rise a key aspect to monitor.

Furthermore, as we previously reported, Dogecoin appears to be repeating trends from its past two bull runs in 2017 and 2021.

Analysts have noted that the current market dynamics bear remarkable resemblance to the eras when DOGE witnessed exponential growth. Increased Open Interest in DOGE futures, combined with solid on-chain indicators, suggests that a rally is on the way.