Dogecoin, the biggest cryptocurrency from the meme trend, is gearing up for the final quarter of the year as the entire cryptocurrency market recovers from the recent crash caused by geopolitical tensions between Israel and Iran.
DOGE is expected to lead other meme coins in a strong growth during this period. Historical patterns from the DOGE/BTC pair suggest that the market could be entering an interesting phase for Dogecoin.
In the past, DOGE's booms began 235 days after Bitcoin's halving, twice resulting in significant gains. A similar pattern has emerged this year, raising the question of whether DOGE could see gains of over 90% this final quarter.
The repetition of these patterns strongly suggests a bullish outlook for Dogecoin in Q4.
Dogecoin RSI Bounces Up
An important factor supporting the bullish outlook is the appearance of divergence signals, which often indicate a possible reversal or continuation of the trend.
In this case, traders are expecting a reversal in the direction of increasing momentum for DOGE. This divergence occurs when Dogecoin trades below its 200-week moving average.
However, the Relative Strength Index (RSI) has bounced off oversold territory, suggesting that now could be an ideal time to initiate long positions, expecting DOGE to see gains similar to previous cycles — potentially exceeding 90%.
Long Term Account Ratio
Another important indicator that points to a positive Q4 for DOGE is the recent long-term account ratio. According to data from Hyblock, the long-term account ratio trading Dogecoin has stabilized over the past 24 hours, trading in the top 96. This stability suggests that long-term traders are in control, reinforcing the bullish sentiment surrounding DOGE.
Additionally, a small increase in the long-term account ratio has affected Dogecoin's open interest, indicating a slight decline. This decrease in open interest usually indicates that short positions are exiting the market, further supporting a bullish outlook for Dogecoin.
Crowd Opinion and Smart Money
Sentiment among large traders and the general crowd appears to be in sync, with both groups leaning towards a bullish view for DOGE. This sentiment adds further confluence to the idea that Dogecoin is poised for growth in the final quarter of the year.
However, like any market, external factors such as geopolitical tensions can influence the direction of DOGE’s price movement. Recent tensions between Israel and Iran have had a marked impact on the cryptocurrency market, demonstrating the unpredictability of financial markets.
Dogecoin appears poised for significant gains in Q4, with historical patterns, technical indicators like RSI, and market sentiment all consistently pointing in an upward trend direction.
While external factors remain a variable in the equation, the current situation suggests that DOGE could replicate its past performance, resulting in returns potentially exceeding 90% by the end of the year.
