Will Dogecoin Price Surge 610% as Whales Accumulate?
Dogecoin price has entered a technical phase that resembled previous bullish cycles. Analysts noted chart signals and on-chain data that showed bullish trends.
A surge in whale activity, a bullish MACD crossover, and a critical pattern retest suggest that DOGE could be preparing for a large upward move.
Dogecoin Price Bullish MACD Cross
Notably, Dogecoin price recently made a bullish Moving Average Convergence Divergence (MACD) crossover. This indicator has traditionally been the beginning of big uptrends.
Analyzing the past MACD crossover events using data provided by Bitcoinsensus, the meme coin rallied 84%, 194% and 446% every time there was such an occurrence.
The recent crossover was also on a similar upward trend, with an indication of comparable momentum change.
Additionally, the most recent reversal happened around an ascending trendline that has been in play since the beginning of 2023. Should the trend hold similar to the previous patterns then the next wave may continue the surges.
Consequently, Bitcoinsensus forecasted a potential 610% rally from the current levels, which would place the price between $0.60 and $0.70.
The MACD’s current positioning below the zero line also suggested early-stage momentum building, like observed in previous surges.
Dogecoin Price Double Bottom Neckline Holds
More so, technical analyst Ali Martinez shared a multi-month chart showing Dogecoin price forming a double bottom pattern.
This structure is generally seen near cycle lows and often serves as a foundation for trend reversals.
Notably, DOGE recently broke the neckline of this pattern, near the $0.27 level. The retest occurred after a 40% increase from the second bottom.
In case the $0.27 level holds, it could validate the breakout and lead to further continuations in higher levels.
Ali projected an upwards trend showing possible short-term resistance around $0.33 and a medium-term target at $0.42. However, a breakdown below $0.27 may invalidate the pattern.
Whale Wallets Accumulate Over 310 Million DOGE
Meanwhile, according to on-chain data, within the past few days, large holders have amassed more than 310 million DOGE. This happened after a mild pullback earlier in the week.
Santiment data shared by Ali Martinez showed that the number of wallets containing 100-1000 million and 1-10 billion DOGE have been added to their balances.
This purchase activity was accompanied by a price recovery and indicated an upward bias of accumulation at low prices.
In the past, comparable wallet activity indicated that whale accumulation has frequently been followed by notable price rallies.
The recent accumulation was in the context of a wider consolidation, which further strengthens the sentiment that whales may be gearing up towards a possible rally.
On top of on-chain wallet information, trading information on HyperLiquid also indicated that a big trader had recently deposited USDC 3.92 million.
He then opened a long position on Dogecoin with 10x leverage. The position held 81.4 million DOGE at an entry of $0.2435; hence, the value of the position was about $19.7 million.
Besides, a recent analysis indicated that Dogecoin price broke through a 146-day ascending channel and managed to retest critical resistance levels.
Moreover, Dogecoin price has increased to reach a weekly peak of more than $0.28 before dipping 4% to $0.2392 at press time.
Although the market cap declined, trading volume increased by 75.86%, an indication of robust trading. DOGE was attempting to recover after pulling back, with support forming near $0.23.
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