Dogecoin price recoiled on Sunday, Aug. 24, as the recent crypto market rally stalled. However, this pullback could be brief, as a top crypto pundit predicted a 30% jump, and its divergence with the future open interest continued.
Summary
- Dogecoin price erased some of the gains made on Friday.
- A popular crypto investor sees DOGE token surging 30%.
- It has a strong divergence with the futures open interest.
Top crypto analyst sees Dogecoin price rising 30%
Dogecoin (DOGE) price rebounded on Friday as market participants reflected on Jerome Powell’s dovish statements at the Jackson Hole Symposium. His speech signaled that the U.S. central bank would start cutting interest rates in September as it focuses on the labor market.
DOGE jumped by 15% following the news, moving from a low of $0.2070 to a high of $0.2400. This rebound was short-lived, as the token pulled back on Saturday and Sunday, losing momentum.
Still, Ali Martinez, a popular crypto pundit on X with over 152,000 followers, predicts that it may be on the cusp of a breakout. Martinez points to the forming symmetrical triangle pattern on the four-hour chart. If this happens, the Dogecoin price would jump to the psychological point at $0.300.
The price of Dogecoin has two main bullish catalysts. First, it has formed a divergence with its futures open interest, which has continued rising. Its interest in the futures market grew to $3.6 billion, up from $3.59 billion on Saturday.
The rising open interest, even as the price is falling, is bullish as it signals increased liquidity and demand.
DOGE price may also rise as investors remain optimistic that the Securities and Exchange Commission will approve the Grascale, Bitwise, and 21Shares DOGE ETFs later this year.
DOGE price technical analysis
The daily chart timeframe shows that the Dogecoin price bottomed at $0.1315 in April this year. It has formed an ascending channel and moved above the 50-day moving average.
DOGE is stuck in the middle of this channel and is a few points above the top of the trading range of the Murrey Math Lines.
Therefore, a move above the strong pivot reversal at $0.2440 will indicate further gains, targeting the upper side of the channel at $0.30. A drop below the support at $0.20 will invalidate the bullish outlook.
