Despite the recent price correction, many analysts and investors believe that Dogecoin (DOGE) is on the verge of a bullish phase, with the memecoin potentially reaching $0.14 or higher in the short term.
DOGE: Bullish pattern and whale activity
A quick glance at Dogecoin’s current price movement might not suggest that a bullish phase is imminent. Dogecoin is currently trading at $0.1091, down 0,30 % from the previous day and up 0,30 % over the past week.
However, after the recent price correction, many investors and analysts are expecting a rally and a bullish market due to several positive developments and increased whale activity. Whales are investors who hold significant amounts of a particular coin.
Large Dogecoin holders accumulated 2.07 Billion $DOGE last week, the highest since January of this year! pic.twitter.com/AOpdGHzGTe
— IntoTheBlock (@intotheblock) October 7, 2024
Crypto chart analyst Ali Martinez points out that Dogecoin is repeating its historical price patterns, indicating a potential rise of up to 200%, followed by a retracement before a larger bull run. In recent weeks, DOGE has formed a consolidation pattern with strong support around the $0.10 mark and resistance at $0.115.
Crypto Daily Trade Signals also sees a breakout to $0.14 as a realistic possibility. If Dogecoin maintains its current support levels, the coin could soon recover in value.
Bitfinex analysts see “healthy realignment” for Dogecoin
On-chain data from IntoTheBlock shows that large transactions – whale activities exceeding $100,000 – have increased by 7%. The number of daily active addresses has also risen by 5.8%, signaling that wealthy investors have confidence in Dogecoin’s price movements. DOGE has also gained social dominance, reaching a five-month high. Elon Musk is adding fuel to the fire, recently joking about reducing government agencies if he were to work at the “D.O.G.E. Department” under a hypothetical Trump administration. However, the U.S. presidential race remains a close contest between Trump and Kamala Harris.
Back to DOGE: Analysts at Bitfinex describe the recent price correction as a “healthy realignment.” Investors should keep an eye on the $0.115 resistance level. Currently, DOGE is trading below this mark and just above the next support level of $0.10. The next move for Dogecoin remains to be seen, but if it can break through the $0.115 resistance, a rally is likely. In that case, $0.14 or more could be achievable in the short term. However, the cryptocurrency is still far from its all-time high of $0.73 in 2021.
