NOIDA (CoinChapter.com)— Dogecoin’s (DOGE) price is up today, May 14. The memecoin continued its rally from May 13, which helped DOGE price close the day with more than 5% gains. Overall, the Dogecoin price spiked nearly 15% since May 13 to reach a daily high near $0.155 on May 14.
Several factors contributed to DOGE price’s recent rally, ranging from bullish social media hype to bullish technicals.
GameStop and Keith Gill’s Influence
Keith Gill, also known as ‘Roaring Kitty‘, was partly responsible for the recent price surge in Dogecoin through renewed interest in meme stocks and cryptocurrencies. As a central figure in the 2021 GameStop short squeeze, Gill’s return to social media has reignited enthusiasm among retail investors.
Gill’s influence during the GameStop saga showcased the power of collective retail trading, and his recent activity has similarly affected the meme coin market. GME prices soared 160% since March 13 following Kitty’s return to social media.
Moreover, the hype from Gill’s comeback trickled into the meme crypto sector, leading to increased trading volume and interest in Dogecoin. The renewed attention attracted investors to not only Dogecoin but also other memecoins like Shiba Inu.
Accompanying the recent DOGE price rally was an increase in the DOGE futures open interest, which rose to $807.1 million on May 14, a rise of 12.4% over the past 24 hours, according to CoinGlass data.
DOGE Price Forms Bullish Setup
Another reason why DOGE price was up today could be the token forming a bullish technical pattern called the ‘Falling Wedge.’
A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.
The pattern typically suggests that an asset’s price, while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs in the direction of the overall trend, which, for a falling wedge, is upward.
To estimate the price target of a falling wedge pattern, traders measure the widest part of the wedge at the beginning of the formation. They then project this distance upward from the point of the breakout to set a potential target.
An accompanying increase in trading volume can further confirm the reliability of the breakout. Higher volume during the breakout suggests stronger market conviction, supporting the likelihood of a successful price reversal.
According to the rules of technical analysis, the Dogecoin price could rally over 92% to reach the pattern’s theoretical price target near $0.286
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