Is The Dogecoin Price Rally Over? Analyst Reveals Why There's Still Room To Run

The Dogecoin price correction prolonged throughout the weekend, teasing what is likely to be the regular end of a strong rally within the previous 4 weeks. The favored meme-based cryptocurrency dropped to a low of $0.3431, retreating from a recent high of $0.4265. This 19.55% decline has sparked speculation on social media concerning the sustainability of its gains and whether the momentum that fueled its rise is definitely fading.

This Dogecoin price decline may be easily attributed to a decline in interest amongst market participants. Social media sentiment, a key driver of Dogecoin’s popularity and price movements, has shown signs of weakness. Nonetheless, in response to a crypto analyst, Dogecoin still has room to run, especially by way of indicators surrounding its popularity.

Interest In DOGE Yet To Reach Its Peak

Despite its status as a big cryptocurrency, Dogecoin’s price uptick is generally tied to social sentiment amongst traders and never by any demand for its utility or parent company. This reliance on sentiment creates a cyclical pattern: periods of heightened interest often result in price surges, followed by inevitable corrections when attention begins to wane.

The newest Dogecoin rally has been brought on by a widespread interest tied to the US presidential election, Donald Trump, Elon Musk, and comical associations with the Department of Government Efficiency (D.O.G.E.). Social media played a big role in amplifying this attention as mentions of Dogecoin surged across platforms. Because it stands, it’s looking just like the interest is beginning to fade, with the Dogecoin price correction relaying this trend well.

In accordance with 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 depicting the social media interest in Dogecoin over time. Although the recent rally has led to a peak in interest, it’s yet to rival that of the interest in 2021. Keeping this in mind, Martinez highlighted that the Dogecoin price has far more room to grow this cycle.

Source: X

What’s Next For Dogecoin Price?

Interestingly, the recent Dogecoin price rally and subsequent correction have led to the creation of a bull flag pattern on the 1-hour candlestick timeframe. This pattern, which is related to a continuation of the prevailing trend, indicates that the Dogecoin price is about to interrupt to the upside and proceed its rally. Now, all that should occur is for the Dogecoin price to shut above $0.40, which could solidify the breakout from the bull flag. Ali Martinez highlights a price goal of $0.85 on this case.

On the time of writing, the Dogecoin price is trading at 0.3691, meaning it has increased by about 7.6% because it reached the $0.343 low. The resumption of social interest towards the 2021 levels would effectively trigger one other leg up within the Dogecoin price.