- DOGE/BTC formed a bullish double bottom at 0.0000145, hinting at potential upside if resistance is cleared.
- A breakout above 0.00000248 could trigger a 70% Dogecoin price rally to approximately $0.37.
- Dogecoin’s founder’s comments reflect a shift in sentiment from Bitcoin to altcoins amid expectations of an altcoin season.
Dogecoin continued to decline on July 30, falling 3.44% to trade at $0.222. Despite the drop, technical signals indicate a possible turning point for the cryptocurrency. The DOGE/BTC pair has formed a double bottom pattern, which may signal a strong support level and a potential rally if resistance levels are broken.
The DOGE/BTC trading pair measures Dogecoin’s strength compared to Bitcoin. Typically, Dogecoin tracks Bitcoin’s movements. However, recent activity shows DOGE may be preparing to outperform. The ratio dropped to a four-year low in mid-June but began recovering after Dogecoin’s price surged from $0.15 to $0.27 between June 23 and last Tuesday.
Technical Support Found at Historical Lows
The DOGE/BTC pair found key support at 0.0000145, forming the base of the double bottom pattern. This suggests strong buyer interest at that level. For a significant breakout, the pair must surpass resistance around 0.00000248. A successful move could push the ratio toward 0.00000426, strengthening the outlook for DOGE.
Historical data indicates that a rising DOGE/BTC ratio often coincides with a Dogecoin price rally. Between October and November 2024, the ratio rose by 191%, while DOGE climbed 350%. If a similar move occurs, Dogecoin may gain 71% from current levels, potentially reaching $0.37 in the short term.
Market Sentiment Shifts as Dogecoin Founder Mocks Bitcoin Sellers
The Dogecoin creator Shibetoshi Nakamoto has recently remarked on those traders who have sold Bitcoin early. The tweet was made when the Bitcoin prices were appreciating sharply, meaning that investor trends were changing. This feeling, coupled with the macro drive on Bitcoin, may promote interest in other alternatives like Dogecoin.
Beyond the positive technical configuration, there may be aspects of impacting market conditions with regard to short-term price fluctuations. Although there is a potential rally according to the DOGE/BTC pattern, the situation, in general, is favorable to market stability.
