Dogecoin, the world's first-ever meme coin created as a joke, is anticipated to break out soon based on the pattern it is currently forming.
The forecast was made by the pseudonymous crypto strategist who uses the Twitter handle rektcapital. The strategist explained to their followers on the social media platform what the Dogecoin chart they shared means.
Based on the strategist's explanation, DOGE is moving within the Falling Wedge pattern at the moment, testing its top and attempting to break out.
The Falling Wedge is a widely known reverse pattern that suggests the price of an asset could spike following its appearance and is opposite to the Rising Wedge pattern, which pushes the price of an asset down when it appears.
On Monday, DOGE led gains among other top crypto assets and saw a 4.32% surge to $0.08936 following a 3.5% gain in the past week.
DOGE's price is above the 200-day EMA trading at $0.0847 with support delivered by two rising trends, the major trendline and the upper accelerated.
Money Flow Index (MFI), the momentum indicator that gauges the flow of money in and out of the asset, saw more funds flowing into Dogecoin against its volume and showing an uptrend that suggests a potential spike in the meme coin's price.
Most of Dogecoin's volume was positive over the past three weeks, propelling the crypto asset's price. But a dip in the MFI on Monday, which fell to 59.40, suggested more money is leaving Dogecoin with investors making a profit.
The steady price gain of the world's first meme coin attracted the attention of whales, or large-tier investors, which resulted in DOGE emerging at the top 10 list of crypto assets most purchased by whales over the past 24 hours.
The Dogecoin Foundation has made several changes to Dogecoin over the past few months, especially in terms of the transaction efficiency of DOGE's system.
This resulted in Dogecoin cutting its carbon footprint by 359 tons in 2022.
The recent achievement, alongside its active community and use cases, could position the meme coin, which was originally created as a joke, as a viable financial instrument.
DOGE continued to trade in the green zone and saw a 0.26% gain over the past 24 hours. It was trading up $0.08972 with a 24-hour volume of $614,121,944 as of 2:59 a.m. ET on Tuesday, according to the latest data from CoinmarketCap.