Dogecoin (DOGE), the popular meme-based cryptocurrency, is currently trading at $0.1112, showing signs of a possible bullish breakout. DOGE is emerging from a multi-year descending triangle pattern, a technical formation that has historically formed prior to significant price increases.
In previous instances, this pattern suggests that it could cause a rebound of up to 200%, allowing Dogecoin to rally to $0.2236, a level last seen in December 2021.
Important points:
Dogecoin could soar 200% following a breakout from a multi-year descending triangle pattern. Whale accumulation and short-term traders have been driving recent price movements, demonstrating confidence in DOGE. A break above $0.1120 could lead to a bullish rebound, with the next targets at $0.1149 and $0.1180.
Historically, when Dogecoin breaks out of this formation, it has experienced an initial rally followed by a 60% retracement before embarking on a more sustained uptrend.
If history repeats itself, DOGE could rise significantly in the medium term due to both technological factors and increased whale activity.
Last week, large holders (whales) accumulated 2.07 billion DOGE, marking the largest accumulation by whales since January.
This whale activity shows growing confidence in Dogecoin’s prospects and indicates that wild price swings are likely in the near future.
Whale activity and short-term traders fuel Dogecoin momentum
In addition to the bullish outlook, Dogecoin is seeing a resurgence in short-term trading activity. More than 110,000 short-term traders have traded DOGE in the past week, outpacing competitors such as Shiba Inu and Pepe.
This increase in trading volume suggests increased speculative interest in memecoins, which may further contribute to memecoin price fluctuations.
Whale accumulation is also an important factor driving recent price momentum. According to Santiment’s on-chain data, whales holding between 1 million and 10 million DOGE have been actively accumulating tokens since early October.
Historically, whale accumulations coincide with market bottoms and often precede bullish reversals.
The number of active addresses on the Dogecoin network surged to 133,880, the highest in eight months. This increase in activity suggests new users are flocking to Dogecoin and renewed interest in the network.
With over 90 million wallets, the Dogecoin community appears poised for growth, indicating it could shed the “meme coin” label and evolve into a more established cryptocurrency.
Technical indicators point to a possible bullish breakout
From a technical analysis perspective, Dogecoin is currently exhibiting a symmetrical triangular pattern, a formation often associated with a period of consolidation before a breakout. The price is currently testing immediate resistance near $0.1120. If DOGE successfully breaks through this level, it could initiate a bullish move towards the next resistance targets at $0.1149 and $0.1180.
Conversely, if Dogecoin fails to break above $0.1120, it may retest the $0.1086, $0.1053, and $0.1030 support levels. The 50-day EMA provides a cushion at $0.1097 and serves as an important support zone for short-term traders.
The Relative Strength Index (RSI) is currently at 55, indicating market momentum is neutral but with room for upside. The Moving Average Convergence Divergence (MACD) indicator is also showing a slight bullish divergence, reinforcing the possibility of an upward breakout in the near term.
Key technology levels and forecasts
Immediate resistance: $0.1120 Next resistance: $0.1149, $0.1180 Immediate support: $0.1086 Next support: $0.1053, $0.1030 50 EMA: $0.1097
Dogecoin technical indicators and whale activity suggest that the price could rise significantly in the coming weeks. If DOGE breaks through the key resistance level at $0.1120, it could quickly move higher towards the $0.1315 level this month. Analysts remain optimistic about a 200% upside potential in the medium term and expect the price to head towards $0.2236 if market conditions go well.
Conclusion: Is Dogecoin preparing for another bull market?
Dogecoin’s current setup is a combination of strong technical signals and growing market interest, especially from whales and short-term traders.
The combination of a breakout from a multi-year descending triangle and whale accumulation makes DOGE a strong candidate for an upside move that could see up to 200% upside.
Although market volatility and broader macroeconomic factors will play a role in shaping its future, Dogecoin appears well-positioned for a rally.
If DOGE maintains its momentum and breaks through the resistance at $0.1120, it could trigger a new bull run and attract more traders, pushing the price to $0.2236.
However, traders should also be mindful of the downside risk if key support levels fail to hold.
As the market evolves, Dogecoin remains a coin to watch, with both technical and on-chain data pointing to the potential for significant price increases in the near future.
