Dogecoin has continued to rise in the past month, rising 234.72%.

• In the past month, Dogecoin has soared 234.72%.
• To achieve a rebound similar to the 2021 level, the memecoin must hold the $0.35 resistance level.

In the past month, Dogecoin [DOGE] has experienced explosive growth, reaching an annual high of $0.43.

During this period, the memecoin has surged an astonishing 234.72%, while the weekly chart has risen 91.97%.

However, the recent price trend has raised concerns about potential downside risks. DOGE has fallen 9.67% on the daily chart. This has led analysts to speculate about the next move.

One of the analysts is Ali Martinez, who believes that as long as the $0.35 support level remains intact, the upward trend of Doge is safe.

Market Sentiment

Martinez believes that in the shorter term, DOGE appears to be forming a bullish flag.

When an asset presents a bullish flag pattern, it indicates that the uptrend may continue.

Martinez stated that to maintain the bullish flag, the $0.35 support level must be maintained. This will validate the bullish flag and confirm the bullish outlook.

Once confirmed, the memecoin will rise 45% to $0.56. Therefore, DOGE must hold the $0.35 support level to continue its upward trend.

What the Price Chart Indicates

While the analysis provided by Martinez offers a positive outlook, other indicators must be checked to determine what they imply.

First, Dogecoin's NVT ratio (including circulating supply) has declined from a high of 582.06 to 111.03 in the past month. When this ratio declines, it indicates that the network is experiencing more actual usage and adoption.

This is a bullish signal, as strong network usage and transaction volume support the price increase, rather than speculation.

Additionally, Dogecoin's MVRV long/short difference has risen to 62.82% in the past month. This typically reflects bullish sentiment, especially in a rising market.

In this case, it indicates that long-term holders are confident in the market and see potential for price appreciation.

Therefore, the market is still preparing for a continued uptrend. This will clarify that the decline on the daily chart is just a correction before the market attempts another uptrend.

In summary, the current market conditions are favorable for DOGE, and the memecoin may record further gains. If these favorable conditions persist, the memecoin will reclaim the $0.44 level and encounter the next resistance at $0.48.