Investor Raoul Pal's opinion and market trends

Dogecoin (DOGE), a cryptocurrency that started as a joke, is once again attracting the attention of investors and analysts. The reason is a statement by a prominent macro investor and former Goldman Sachs hedge fund manager, Raoul Pal. According to him, DOGE may establish itself as a significant asset in the crypto market and reach new all-time highs against Bitcoin (BTC).

This opinion has sparked active discussion among crypto enthusiasts and skeptics of meme coins. Let's explore the basis for Pal's optimism and the fundamental factors that could lead Dogecoin to surprise the market again.

Raoul Pal: from macroeconomics to crypto optimism

Raoul Pal is known as one of the first institutional investors to recognize the potential of cryptocurrencies. He founded the Real Vision platform and frequently comments on global economic and investment trends. His views often stir debate but are hard to ignore, rooted in real-world experience.

Recently, Pal turned his attention to the DOGE/BTC chart, which tracks Dogecoin's price in relation to Bitcoin rather than in dollars.

Pal observed that the DOGE/BTC chart is beginning to form a specific technical pattern traders call a "large flag." To simplify:

• Initially, DOGE's price surged, forming the "flagpole."
• Then it started moving sideways within a narrow range, like a flag fluttering in the wind.

Such behavior often signals a temporary pause in the market, where participants are "thinking" about their next move. This pause may indicate buyers gathering strength before a renewed upward move.

This is important because, according to Pal, flag patterns often precede price breakouts. If accompanied by increasing trading volume and interest from large investors, the chances of a strong Dogecoin rally become exceptionally high.

"I still think the funniest possible outcome is DOGE becoming the hardest currency on earth… on the DOGE/BTC chart… I see a potential big flag pattern and new highs," Pal noted.

Technical analysis of DOGE/BTC

This is not the first time Pal has analyzed Dogecoin's price action relative to Bitcoin. He points out that over the past 10 years, the DOGE/BTC chart has twice shown a "falling wedge" pattern. Here's what that means:

• Imagine a narrowing triangle pointing downward. Price movements become tighter, compressing inward.
• The chart trends down, but each drop is less sharp than the last.
• This often suggests sellers are losing steam, while buyers prepare for a breakout.

In technical analysis, the falling wedge is commonly seen as a bullish signal — a precursor to price increases.

According to Pal, every time a falling wedge appeared on the DOGE/BTC chart in the past, it was followed by a sharp rally in Dogecoin, meaning its price against Bitcoin surged.

Currently, Pal believes a "large flag" is forming. Combined with DOGE's historical tendency for impulsive rallies, this increases the likelihood of a new bull cycle.

This kind of analysis is worth considering, especially given the current uptick in market activity. While Dogecoin is not a technologically groundbreaking project, its market behavior and social support make it a unique phenomenon in the crypto space.

Fundamental triggers: what's driving Dogecoin's rise?

In recent weeks, Dogecoin has already shown increased activity. It surged by over 31% in a short span, coinciding with a general wave of optimism in the crypto market. Participants are once again discussing the potential onset of a new "alt season" — a period when altcoins rally sharply while Bitcoin's dominance wanes.

Another key signal came from whale behavior. According to analytics platform Santiment, in the 48 hours leading up to May 10, large addresses (whales holding significant volumes of DOGE) acquired over 600 million tokens. Historically, such buying sprees often precede major price movements.

This suggests that interest in DOGE is growing among retail investors and players capable of influencing the market with large trades.

Analyst skepticism: DOGE's volatility and speculative nature

Despite Pal's optimism and growing interest, many analysts remain cautious. The primary concern is DOGE's speculative character. Unlike Bitcoin or Ethereum, Dogecoin lacks a clear development roadmap, a robust developer community, or unique technological innovations.

Meme coins — including DOGE — are prone to extreme price volatility driven by emotional reactions, social media activity, and tweets from influential figures like Elon Musk. As such, some experts argue that sudden spikes in interest do not always translate into sustainable trends.

Moreover, the high concentration of DOGE among whale wallets increases the risk of manipulation and sudden sell-offs, as observed in previous market cycles.

Dogecoin and pop culture: an asset turned symbol

Dogecoin occupies a unique niche in the crypto world. It has become a symbol of crypto pop culture, and its cheerful Shiba Inu mascot is recognized globally. This gives DOGE a rare advantage: widespread name recognition outside the crypto community, making it potentially attractive to new investors.

This factor is difficult to quantify but plays a key role in shaping demand. With the rise of investment platforms like Robinhood, meme coins have evolved from internet jokes into vehicles for quick profits, fueling greater interest and demand.