Dogecoin is holding above $0.16 with a 3.12% intraday gain after 12.7% volatility.
Analysts highlight a falling wedge breakout and ascending channel, eyeing $0.175$0.57 upside potential.
Whale investors acquired 220 million DOGE, signaling strong confidence in a bullish move.
Dogecoin, the popular meme-inspired cryptocurrency, is showing signs of strength above the $0.16 support level, gaining over 3.12% in intraday trading. That comes after a rollercoaster period where the price fluctuated within a sharp 12.7% range, swinging between $0.179 and $0.156. Investors are watching closely as the asset forms key patterns that could determine its next major move.
Source: Trading View
One major technical pattern taking shape is the classic falling wedge on its daily chart. The price recently pierced a descending resistance level near $0.125 and is now in a retest phase, according to the analyst WHALES_CRYPTOzz. A successful retest could confirm a bullish breakout, possibly setting the stage for an upward rally. The volume profile backs that narrative, as trading activity increases.
Dogecoins daily chart shows a falling wedge breakout with ongoing retest, the analyst noted. If the pattern plays out, we might see $DOGE reach $0.175 or even higher, up to $0.220.
Source: WHALES_CRYPTOzz
Breakout or Breakdown for Dogecoin
Adding to the bullish case, well-known analyst Ali Martinez recently noted that the meme coin is at a make-or-break level. He pointed to an Ascending Channel pattern forming on Dogecoins 1-week price chart. If the price manages to break above the channel, it could spark a significant rally. Conversely, a drop below support could lead to a deeper correction.
Martinezs analysis shows that Dogecoin has recently tested the lower boundary of the Ascending Channel at around $0.16. The last time the coin touched this support level, it triggered a powerful rally. This suggests that the current retest could be crucial for Dogecoins next move.
If $0.16 holds, a rally to $0.57 could follow. If it fails, a drop to $0.06 becomes likely, Martinez noted.
Source: ALi_Charts
His price targets are based on Fibonacci Retracement levels, a tool used to identify potential reversal points. The $0.57 target aligns with the 1.0 Fibonacci level, while the $0.06 target corresponds to the 0.618 level.
If Dogecoin fails to hold above the key support, a drop to the next Fibonacci level could send the price tumbling. However, if the bulls maintain control, a surge toward the higher retracement levels remains a strong possibility.
Whale Investors Betting Big on Dogecoin
A significant development in Dogecoins market activity is the aggressive accumulation by large investors, commonly referred to as whales. Data from Santiment reveals that last month, whale wallets acquired nearly 220 million DOGE, valued at approximately $36.08 million.
Source: Ali_Charts
Such large-scale buying by institutional and high-net-worth investors suggests confidence in a potential price recovery. Heavy accumulation during price dips is often a sign of smart money positioning itself for future gains. If whales continue to buy, it could provide a strong foundation for Dogecoins next rally.
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