Can Dogecoin (DOGE) Stage a Comeback and Hit $10 with Recognizable Chart Patterns?
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Key Points
– Analysts are drawing parallels between Dogecoin’s recent performance and its 2020 bull run, suggesting a potential surge to $10.
– The Bollinger Bands indicator indicates resistance at $0.089, but a breakthrough could lead to a target of $0.1.
– Dogecoin whales, who hold 10 million or more DOGE, are choosing to accumulate rather than sell during a market dip.
Could Dogecoin be on the brink of a mega rally? Analysts are speculating that the meme-favorite cryptocurrency could potentially reach $10 in the upcoming bull market, drawing parallels between its recent price movements and its notable 2021 bull run.
Crypto analyst Ali Martinez, known for insightful market observations, has pointed out intriguing similarities between Dogecoin’s recent performance and its behavior in 2020. Back then, DOGE broke out from a descending triangle, went through a consolidation phase, and then skyrocketed by an impressive 28,770%.
The current scenario seems to mirror this pattern, with Dogecoin recently breaking out of a descending triangle and entering a consolidation phase. Analysts believe that this phase could be setting the stage for the next bull run.
However, the Bollinger Bands technical indicator suggests that there is significant resistance near $0.089. A successful breakthrough beyond this level could trigger a substantial bullish surge, potentially aiming for the anticipated price target of $0.1. Despite this, investors have long been anticipating Dogecoin to reach $1. During the previous bull run, DOGE reached an all-time high of 66 cents but has since corrected by almost 90%. Currently, Dogecoin is trading at $0.083 with a market cap of $12.05 billion, remaining above its 20-day Simple Moving Average (SMA).
Interestingly, recent on-chain data reveals a unique approach taken by Dogecoin’s strategic whale investors during the recent market dip. Instead of following the common trend of selling off assets, a specific group of whale investors, each holding at least 10 million DOGE tokens (~$800,000), has chosen to accumulate more. A Santiment chart visually represents the dynamic shifts in the balance of whale wallets, showing a cumulative Dogecoin whale balance that now exceeds 15 billion DOGE tokens.