Traders are ramping up their positions on Dogecoin as its price "breaks out," reaching its highest monthly level on July 20. However, not all are convinced that the bullish pattern is confirmed just yet.

“DOGE is breaking out and looks primed for an aggressive up move,” pseudonymous crypto trader Shelby wrote in a July 20 X post. They reiterated that Doge’s price breaking out has previously been “a catalyst” for other altcoins to follow, including Floki (FLOKI) and Shiba Inu, which have increased 37% and 3.89% respectively, according to CoinMarketCap data.

Meanwhile, crypto trading accounts Cheds and CryptoBoss pointed to the “nice base break” on Dogecoin’s price, claiming that it is “breaking out.” DOGE is currently trading at $0.1336, up 18.82% over the past seven days.

On the other hand, pseudonymous crypto trader Magnate warned their followers “do not FOMO here, pullback offers a lower price.” A 10.6% move down to $0.1194, a price level seen just seven days prior, will liquidate approximately $47.23 in long positions.

Dogecoin recently reached its highest level of Open Interest (OI) — a measure of the total value of all outstanding or “unsettled” Bitcoin futures contracts across exchanges — for the month of July, jumping 19% to $647.19 million over four days, according to CoinGlass data.

Doge price spike follows major movement in market sentiment indicator

Meanwhile, the market sentiment across the board is growing, according to the Crypto Fear & Greed Index.

The indicator, which tracks market sentiment toward Bitcoin and crypto, is sitting at a “Greed” score of 74, up 41 points from its “extreme fear” score of 33 last week.

The price spike follows recent speculation about whether Dogecoin could replicate its previous performance of reaching an all-time high of $0.73 a year after the previous Bitcoin halving, in May 2021.

Dogecoin price rose to its all-time high of $0.73 on May 8, 2021, a year after the 2020 Bitcoin halving.

If this pattern were to repeat, Dogecoin price would reach a new all-time high in April 2025. However, technical analysis is difficult to apply to memecoins as their value is speculative.

Source : Cointelegraph - Jul 21, 2024