Despite a Recent Price Correction, the Dogecoin Rally May Not Be Over Yet

The Dogecoin price correction extended throughout the weekend, teasing what might be the steady end of a powerful rally in the previous four weeks.

The Dogecoin price correction continued over the weekend as بازار interest in the meme cryptocurrency appeared to wane.

DOGE price dropped to a low of $0.3431, down from a recent high of $0.4265. This 19.55% decline sparked speculation on social media about the sustainability of its gains and whether the momentum that propelled its rise was fading.

This price decline can be largely attributed to a decrease in interest from market participants. بازار interest, which is a key driver of Dogecoin’s popularity and price movements, showed signs of weakness during this period. However, according to one crypto analyst, Dogecoin still has room to run, especially in terms of the indicators surrounding its popularity.

Interest In DOGE Yet To Reach Its Peak

Despite being a large cryptocurrency, Dogecoin’s price uptick is largely tied to social sentiment among traders and not by any demand for its utility or parent company. This reliance on sentiment creates a cyclical pattern where periods of heightened interest usually lead to price surges, followed by inevitable corrections when attention begins to wane.

The latest Dogecoin rally was driven by a combination of interest largely tied to the US presidential election, Donald Trump, Elon Musk, and comical associations with the Department of Government Efficiency (D.O.G.E.). This attention was amplified on social media as mentions of Dogecoin soared across platforms. Now, it appears that this interest is starting to wane, a trend that is being relayed by the Dogecoin price correction.

However, according to crypto analyst Ali Martinez, who highlighted this trend on social media platform X, the Dogecoin popularity hasn’t even reached its peak yet. The analyst shared a chart that depicted the social media interest in Dogecoin over time. While the recent rally did lead to a peak in interest, it still doesn’t rival that of the interest in 2021. Keeping this in mind, Martinez went on to say that the Dogecoin price has way more room to grow this cycle.

What’s Next For Dogecoin Price?

Interestingly, the recent Dogecoin price rally and subsequent correction have resulted in the formation of a bull flag pattern on the 1-hour candlestick timeframe. This pattern, which is usually associated with a continuation of the prevailing trend, indicates that the Dogecoin price is about to break to the upside and continue its rally.

Now, all that needs to happen is for the Dogecoin price to close above $0.40, which would confirm its breakout from the bull flag. Ali Martinez highlights a price target of $0.85 in this case.

At the time of writing, the Dogecoin price is trading at 0.3691, up about 7.6% since reaching a low of $0.343. A renewed surge in social interest to the 2021 levels would likely trigger another leg up in the Dogecoin price.

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