Dogecoin (DOGE) Price Gearing for A Mega Rally?
Renowned crypto analyst Ali Martinez has noticed similarities in Dogecoin’s price behavior, suggesting a potential repeat of historical patterns.
Martinez highlights the resemblance between Dogecoin’s current price action and its behavior in 2020, where it broke out from a descending triangle pattern, consolidated, and then experienced an exponential surge of 28,770%.
Currently, Dogecoin seems to be following this pattern again. It recently broke out of a descending triangle and is now in a consolidation phase. This phase could potentially set the stage for the next bull run.
However, investors have been eagerly waiting for Dogecoin to reach $1. During the last bull run, DOGE reached its all-time high of 66 cents but corrected almost 90% since then. Currently trading at $0.084 with a market cap of $12.05 billion, DOGE is holding above its 20-day SMA.
According to the Bollinger Bands technical indicator, bulls face significant resistance near $0.089. Breaking through this barrier could initiate a substantial bullish surge towards the anticipated price target of $0.1.
DOGE Whales Accumulate
Data on the blockchain shows that some strategic whale investors are taking advantage of the market dip instead of selling off their assets. The Santiment chart provides real-time insights into the investment behaviors of these whale wallets, each containing at least 10 million DOGE (~$800,000).
The current balance of Dogecoin whale wallets exceeds 15 billion DOGE tokens.
Hot Take: Potential Mega Bull Run Ahead
If history repeats itself, Dogecoin could be gearing up for a mega bull run. The similarities in price behavior between its current movements and those in 2020 are hard to ignore. With the recent breakout from a descending triangle pattern and the ongoing consolidation phase, DOGE could be on track to replicate its exponential surge of 28,770%.
Although investors have been waiting for DOGE to reach $1, it’s important to note that the cryptocurrency experienced a significant correction after reaching its previous all-time high. However, breaking through the resistance near $0.089 could signal a bullish surge towards the anticipated price target of $0.1.
Additionally, the accumulation of DOGE by strategic whale investors suggests confidence in the cryptocurrency’s potential. With over 15 billion DOGE tokens held in whale wallets, it’s clear that some big players are positioning themselves for a potential rally.
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