Recent on-chain data shows an increase in short-term trading activity for the memecoin, which could lead to an increase in Dogecoin price.
Dogecoin’s recent 65% price retracement is consistent with a typical pattern after a breakout from a multi-year descending triangle, setting the stage for a potential bull run.
Dogecoin price soars: 200% goal in sight
Crypto analyst Ali Martinez highlighted the potential for large fluctuations in Dogecoin’s price. DOGE prices are currently breaking out of a multi-year descending triangle pattern, Martinez said. This has historically been a sign of significant price increases.
In a previous example, meme coins experienced a 200% surge after a similar breakout. However, it then saw a 60% retracement before embarking on a more significant bull run.
For historical analysis, Martinez pinned three breakouts similar to the one seen this year since 2015, each with strong upward momentum. If history repeats itself, a mid-term rally could push Dogecoin’s price up by 200% to as much as $0.2236. This level was last seen in December 2021.
The coin retreated to its current price of $0.1112, representing an increase of 2.92% in the past 24 hours. Nevertheless, its historical trends look promising. Broader market conditions, including the outlook for macroeconomics and investor sentiment, are likely to shape its direction in the coming weeks.
Adding to the bullish sentiment, whale activity around Dogecoin has also intensified, with whales accumulating 2.07 billion DOGE in just one week.
This marks the most significant accumulation of this token by whales since January. It is also showing strong interest from large holders, which could set the stage for significant price movements.
However, this may not have been completely unexpected. Recently, when the cryptocurrency market was hit by sudden selling pressure, Dogecoin price showed resilience and recorded an increase.
Approximately 110,000 short-term traders traded Dogecoin last week alone, far outpacing its closest rivals Shiba Inu, DEGEN, and Pepe. This increase in trading volume shows that the meme coin continues to be an attractive option for traders looking to strike it rich in the meme coin market. That could mean more speculation or renewed attention to DOGE, which leads the meme coin market.
The DOGE community is back in action with a sudden increase in active addresses
First and foremost, it must be emphasized that historically, whenever Dogecoin’s price breaks out of a multi-year descending triangle pattern, a serious rally in price follows, with returns of around 200%. .
After the initial spike, the market typically experiences a retracement of about 60%. This often forms a consolidation before the next major uptrend. If history is any guide, this breakout could be the starting point for another strong rally.
Active DOGE addresses recently surged to 133,880, the highest level in eight months.
This significant increase highlights a renewed interest within the DOGE community, especially as new users flock to the network.
Analysts attribute this growth to a combination of factors, including widespread positive sentiment in the market and an increase in the number of wallets, which reached more than 90 million. The increase in active addresses reflects the rapid increase in participants. It also suggests that DOGE may have more bullish momentum going forward.
active #Dogecoin Addresses recently surged to 133,880, the highest level in eight months. pic.twitter.com/DojEsDscXk
— Ali (@ali_charts) October 12, 2024
Memecoin reached its highest price on September 28, 2024, when DOGE reached $0.1350. It has since lost about 15% of its value. However, things calmed down in early October.
At the time of writing on October 12, DOGE was trading at $0.1111, an increase of 2.64% from the previous week. Analysts remain optimistic that DOGE could rally to $0.1315 this month, with increased interest in whales to support such a rebound.
According to recent Santimento data, whales with 1 million to 10 million DOGE in their wallets continue to actively accumulate DOGE. This has been going on since October 2024, despite large price fluctuations. This is a sign that large holders seem to be very confident in the coin’s future prospects.
Historically, when this accumulation trend appears, it has often coincided with market bottoms and signaled the possibility of a price reversal. If this pattern holds true, Dogecoin’s price could be poised for a big rally in the short term, as confidence among these “whale” investors usually precedes a market rally.
Whale accumulation and new users fuel Dogecoin’s rise
Speculation abounds as to Dogecoin’s future trajectory, leading to significant growth, especially in active addresses and whale accumulation.
For example, an increase in active addresses indicates that new users are starting to flow into the market, perhaps in anticipation of further development of the Dogecoin network. This enthusiasm from new entrants is very important because it signals a renewed enthusiasm from investors.
However, it is difficult to predict what will happen to Dogecoin’s price in the future. Like other cryptocurrencies, DOGE’s strong community and celebrity endorsement make it more reliable, but it remains susceptible to market fluctuations.
More recently, this milestone has surpassed 90 million wallets, marking a growing base and potentially catalyzing the innovation and adoption that has echoed the growth of major cryptocurrencies such as Bitcoin and Ethereum. There is.
According to some reports, the surge in activity indicates renewed investor interest. With new entrants and whales buying into it, it looks high for Dogecoin’s price and token to shed its meme currency tag and position itself as a serious growth cryptocurrency. With adoption and innovation becoming key elements of the future, the market will be watching to see how these factors develop.
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Teuta
Teuta is a veteran writer and editor with over 15 years of experience in the macroeconomics, technology, cryptocurrency and blockchain industries. He started his career in 2005 as a lifestyle writer for Cosmopolitan magazine in Croatia and went on to cover business and economics for prestigious publications such as Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing that cryptocurrencies are one of humanity’s most important inventions. Her fintech efforts began in 2014 and focused on cryptocurrencies, blockchain, NFTs, and Web3. Known for his excellent teamwork and communication skills, Teuta holds a double master’s degree in political science and law, loves punk rock and Chablis, and has a passion for shoes.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.