Is Dogecoin primed for a price rally? Here’s what indicators suggest!

Dogecoin Surges, Bull Indicator Signals Buy Opportunity

In the past 24 hours, Dogecoin's (DOGE) price has risen by over 6%. The memecoin's funding rate has also decreased significantly.

DOGE, the world's largest memecoin, has had a strong week. As a key indicator has signaled a buy signal, investors may want to buckle up for further price increases.

Bullish Sentiment Rises

According to CoinMarketCap, DOGE's price has gained over 6% in the past seven days. In the last day alone, the memecoin's value has increased by over 2%.

At the time of writing, DOGE was trading at $0.1252 with a market capitalization of $18 billion, making it the ninth largest cryptocurrency.

Due to the recent price surge, DOGE's weighted sentiment has shifted to the positive zone, indicating bullish sentiment is dominating the market. Additionally, its social volume remains high, reflecting its popularity.

Buy Signal Detected

Crypto analyst Ali highlighted an important development, stating that Dogecoin's TD sequential has signaled a buy signal, indicating a potential price increase.

On-Chain Analysis

Chain metrics suggest DOGE may be poised for a pump. Santiment's data shows that the MVRV ratio has improved, which is a bullish sign.

The funding rate has also turned negative, which historically has been associated with price increases. However, the open interest has decreased while the price has increased, raising the possibility of a price decline.

TradingView's analysis indicates a potential bullish crossover on the MACD. However, the RSI and CMF suggest a possible price drop.

Caution Advised

Despite the bullish indicators, traders should exercise caution due to the declining open interest. The RSI and CMF also point to a potential price correction.