Dogecoin Spikes On 'Largest Shorting' As Analyst Sees Price Hitting 'A Dime Sooner Than You Think'

Dogecoin DOGE/USD on Tuesday experienced a significant uptick, reclaiming the $0.070 level for the first time in four weeks. 

What Happened: On-chain analytics firm Santiment reported that the recent rally may be attributed to the largest shorting of DOGE in 2023, which occurred just six days ago.

Despite the surge in price, the level of discussions and overall interest surrounding the meme-inspired cryptocurrency has remained relatively low, as per Santiment data.

Prominent pseudonymous analyst Kaleo on Tuesday expressed optimism about DOGE’s future, suggesting that the cryptocurrency may reach $0.10, sooner than anticipated.  "DOGE to a dime sooner than you think," the analyst said.

Kaleo pointed to the recent movement among other digital currencies and the increasing strength of Pepe Coin PEPE/USD as indicators that investors may have overlooked Dogecoin’s potential. He further predicted a potential squeeze and reclaiming of the bearish trend against Bitcoin BTC/USD in the near future.

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Why It Matters: According to an analysis by Benzinga on Tuesday, while Bitcoin and Ethereum ETH/USD were experiencing slight consolidation after previous bullish days, Dogecoin was displaying notable strength.

The key factor to watch for DOGE is its ability to break up from the mother bar, which was formed on July 1. If this breakout occurs, it would confirm a new uptrend for Dogecoin.

In technical analysis, an uptrend is defined as a consistent series of higher highs and higher lows on the price chart. This pattern suggests upward momentum and potential for further price appreciation.

Price Action: At the time of writing, DOGE was trading at $0.068, up 0.70% in the last 24 hours, according to Benzinga Pro.

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