Dogecoin Price Eyes a 52% Surge as $658M Worth of DOGE Exit Exchanges

Dogecoin price has pulled back in the last seven consecutive days and reached its lowest level since June 6. DOGE today, June 17, trades at $0.1700, down by 35% from its highest point in May. It has formed a highly bullish falling wedge pattern, pointing to an eventual comeback. 

Dogecoin has also experienced increased exchange outflows, which could signal more gains ahead. 

Dogecoin Price Falling Wedge Points to a Rebound

The daily timeframe shows that the Dogecoin price has been in a strong downtrend in the past few weeks. This crash started when the coin formed a double-top pattern at $0.2600 and a neckline at $0.2100. 

A double-top pattern is a popular bearish reversal pattern comprising of two resistance levels and a neckline. It often signals that bulls are unable to force a push above that resistance level. The coin has moved below the 50-day and 200-day moving averages. 

On the positive side, DOGE price has formed a falling wedge chart pattern. This pattern comprises of two descending and converging trendlines, with a breakout happening when the two lines near their confluence levels. 

A breakout above the upper side of the wedge will raise the possibility of the Dogecoin price rising to $0.2600, the highest point in May, which is about 52% above the current level. 

A drop below the lower side of the wedge pattern at $0.1535 will invalidate the bullish DOGE price forecast. Such a move will point to more downside, potentially to the year-to-date low of $0.1300. 

DOGE ETF Outflows are Rising

Dogecoin price has a potential catalyst in that investors are moving their tokens away from exchanges into self-custody this year. CoinGlass data shows that exchange outflows have been going on since November last year. 

In total, over $5 billion worth of coins have moved out of exchanges since this period. Most recently, the net outflows from exchanges has jumped to over $658 million since the first week of May.

The other bullish catalyst for DOGE price is that the funding rate has remained positive in the past few months. A funding rate is a small fee in perpetual futures that helps to keep the spot price aligned with the futures price. 

A positive funding rate signals that investors believe that the future price will be higher than the current price over time. DOGE has a funding rate of 0.0056% and has remained in the positive zone since June 13. 

Summary

Dogecoin, the top meme coin, has crashed in the past few weeks, mirroring the performance of other altcoins. This crash could end soon as the two lines of the falling wedge pattern near their confluence levels and as exchange outflows rise.