Dogecoin (Doge), the most valuable memecoin on the market, continues to consolidate a bullish flag in its price, a figure that arouses optimism among its investors.
As Cryptonoticia explained, a bullish flag is a pattern of technical analysis that It begins to form after a strong initial movement (the Asta), followed by a consolidation phasein which the maximum and minimum price converge until it is touched. In this way, the triangular figure is generated.
This kind of compression usually precedes a break that, generally, It is in the same direction as the initial trend, that is, upwards.
Although no predictive model is 100% effective, XRP’s recent case demonstrates how a bullish flag can anticipate important movements.
The Ripple Labs cryptocurrency formed a flag that ended with a break that allowed him to reach a new historical maximum (ATH) after 7 years without achieving it.
Leaving aside the technical analysis, the good news for Memecoin investors based on a viral Internet dog is that it has its own foundations that reinforce the upward feeling.
The main reason is The link that Doge maintains with Elon Musk. Every time the businessman and CEO of Tesla mentions the meme cryptocurrency, its price reacts to the rise challenging any financial logic.
This phenomenon It is reinforced by the fact that MUSK is in charge of the Government Efficiency Department (Doge)which uses the logo of the iconic viral puppy of the Internet on its website.
Likewise, it should be noted that the company X, also of Elon Musk, advances in an association with a visa to offer payment solutions through the application of social networks.
In this context, the Doge community demands that the asset be included in the platform, what could catapult its adoption at levels never seen and give it the impulse necessary to overcome the psychological barrier of 1 dollar.
In this regard, Raoul Pal, former executive of Goldman Sachs, believes that if Doge is incorporated into the X payment platform, Its bullish potential “could be unlimited” and remarks that it could reach the level of 5 dollars in the short term. With some humor, he said: “Imagine ties, purchases or pay without problems with doge in the world’s largest social network.”
However, and beyond its excessive optimism, it is important to explain that in order for this price to capitalize Dogecoin market should be exceeding 739,000 million dollars.
To put in perspective, and in the hypothetical case that the current market conditions were maintained, Doge would be more valuable than Ether (ETH), the cryptocurrency of the Ethereum Network. That is not probable.
Ali Martínez, market analyst, questions the logic of using market capitalization to predict price behavior. Instead, he points out that factors such as speculation and support of the community usually have a greater weight than traditional financial rules.
According to his approach, Doge could have a 900% increase in just 48 hours, as happened in 2021. If its prediction was fulfilled, the quotation of the memecoin would be greater than 3.20 dollars.
Finally, it should be noted that two companies have submitted their requests before the Bag and Securities Commission (SEC) To list a quoted background (ETF) based on Dogecoin.
The possible approval of these financial instruments would give greater visibility to the asset among institutional investors, which would generate an upward boost in its price.
