Dogecoin DOGE/USD has underperformed vis-à-vis the rest of the memecoin market in the last two weeks, but an analyst predicted massive gains for the original dog-themed token in the days ahead.
What Happened: Popular cryptocurrency trader Kevin drew attention to the coin's inverse head and shoulders pattern on the price chart. He observed a consolidation around the neckline.
Typically, technical analysts take the aforementioned formation as a sign of a potential reversal from a downward trajectory. The neckline serves as a resistance level that the price must break through to confirm the pattern.
Kevin anticipated DOGE to break to the upside in the next 2-3 days, potentially soaring to $0.22. This would mean a 32% jump from prevailing prices.
Another widely-followed cryptocurrency trader, who goes by the pseudonym Lieutenant Ponzi, predicted a DOGE rip in the "not too far" future.
Why It Matters: The total holdings of long-term investors of DOGE rose marginally by 0.03% in the last 24 hours, according to IntoTheBlock, signaling accumulation in anticipation of a price rise.
This observation was backed by the negative exchange net flows recorded in the last 24 hours, suggesting that more funds were leaving than entering exchanges.
The number of bullish long positions taken for the coin also increased in comparison to bearish shorts in the last 24 hours, according to Coinglass.
Price Action: At the time of writing, DOGE was exchanging hands at $0.1658, following a 2.45% decline in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: Shutterstock.com
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