Dogecoin’s price has fallen by 1.6% and is trading at $0.1071 at the time of writing, showing poor performance. Analysts cited a similar pattern to Dogecoin’s 2021 bull market and predicted a potential rally.
Dogecoin (DOGE), the meme-inspired cryptocurrency, has been battling market volatility over the past week despite previous attempts to rally.
Dogecoin was up 2.7% last week, showing a slight upward trend, but recent performance has been disappointing.
The value of the cryptocurrency has fallen over the past 24 hours, hitting a low of $0.1065 before recovering slightly to a trading price of $0.1071 at the time of writing.
This represents a 1.6% decline over the past day, adding to a sluggish trend that has many investors questioning the asset’s ability to recover.
DOGE historical pattern
A notable development came from noted crypto analyst Trader Tardigrade, who shared his optimistic outlook for Dogecoin via X (formerly Twitter).
The analyst pointed to a technical pattern known as the “Williams Alligator” that suggests Dogecoin may be poised for a breakout.
Source: Tardigrade Trader of X
Trader Kumamushi noted that this pattern, following a breakout from a long-term downtrend, mirrors a similar consolidation phase witnessed before 2021’s massive bull run.
This observation has sparked discussions about whether Dogecoin will be close to another significant rally in the near future.
Cows running on the horizon?
While the technical outlook suggests potential bullish momentum, a deeper analysis of Dogecoin’s fundamentals could provide a clearer picture of the asset’s trajectory.
One important indicator to keep an eye on is the Relative Strength Index (RSI), which measures the speed and change of price movements.
At the time of writing, Dogecoin’s RSI remained at a neutral value of 38, according to CryptoQuant data.
Source: CryptoQuant
This indicates that the asset is neither overbought nor oversold, suggesting there is still room to move in either direction depending on market sentiment.
In addition to RSI, whale activity provides valuable insight into market behavior.
Whale trades involving transfers of more than $100,000 are often seen as a barometer of interest from institutional and high-net-worth investors.
Read Dogecoin (DOGE) price prediction for 2024-2025
According to data from IntoTheBlock, there has been a significant drop in Dogecoin whale trades this month, with the number dropping from 1.56,000 to just 1,1,000 at the time of writing.
This decline could signal a decline in interest or confidence from large investors, potentially weakening the potential for an immediate price spike.
Source: Into the Block
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