Dogecoin has confirmed a renewed uptrend after rallying over 33% in the previous week. Crypto market analyst Ali Martinez has identified a technical setup that could drive further gains for the memecoin.
According to Martinez, Dogecoin could rally toward $0.115 if the price breaks above a bullish flag formation on its 1-hour chart. This technical pattern signals the continuation of an existing upward trend. Based on Dogecoin trading near $0.086, such a breakout would represent approximately 33% upside potential.
Technical Support and Resistance Levels
Martinez has identified a strong support level for Dogecoin around $0.081, backed by 30 billion DOGE that traded near that price level according to Glassnode's UTXO Realized Price Distribution metric. The analyst expects the next major sell pressure to occur around $0.177.
Derivatives Market Shows Bullish Signals
Positive sentiment in the derivatives market supports the potential for further Dogecoin gains. The DOGE Funding Rate, which reflects fees between long and short positions on perpetual contracts, has remained positive since July 24. A positive Funding Rate is historically associated with bullish sentiment among traders.
Dogecoin's open interest in derivatives stood at $1.36 billion, reflecting active trading activity in the perpetual futures market. The combination of technical setup and positive derivatives positioning creates conditions that could support Martinez's price target in the near term.
