- Dogecoin (DOGE), the world’s largest memecoin, is exhibiting chart patterns reminiscent of its 2020 price behavior, suggesting a 28870% price rally ahead.
- Dogecoin whales have been buying all this while as technical indicators and on-chain analytics hint at potential bullish momentum.
Memecoins have delivered typically dull performance during the recent altcoin market rally over the last few months. The world’s largest memecoin aka Dogecoin (DOGE) is showing up chart pattern, typically similar to 2020, ahead of the mega bull run of 2021.
Crypto analyst Ali Martinez has identified intriguing parallels in Dogecoin’s recent price movements with those observed in 2020, hinting at a possible recurrence of historical trends.
Martinez draws attention to the similarities between Dogecoin’s current price trajectory and its behavior two years ago. In 2020, the cryptocurrency surged after breaking out from a descending triangle pattern, followed by a period of consolidation, and eventually saw an extraordinary 28,770% increase. If history repeats itself, there’s speculation that Dogecoin (DOGE) could potentially soar to $10 in the forthcoming bull market.
At present, Dogecoin seems to be mirroring this pattern, having recently broken out of a descending triangle and currently undergoing a consolidation phase. Martinez suggests that this consolidation phase might be laying the groundwork for the next bullish surge.
Notably, on-chain analytics reveal a group of strategic whale investors choosing to capitalize on the market downturn rather than following the prevailing trend of asset liquidation. The provided Santiment chart visually depicts the ongoing fluctuations in the holdings of whale wallets, each possessing at least 10 million DOGE (~$800,000), providing timely insights into their investment strategies and actions.
Dogecoin Technical Indicators And Immediate Price Action
Dogecoin (DOGE) saw a breakout above the descending trendline on February 14th, only to witness profit-taking shortly afterward. However, this initial breakout sparked interest among sidelined investors, positioning the asset for a potential rally.
DOGE currently maintains its position above the descending trendline, hinting at a potential 5% surge towards the $0.0900 mark. The Relative Strength Index (RSI) trends upwards, indicating growing momentum. A crossover of the RSI above its signal line could serve as a bullish signal.
Additionally, the Awesome Oscillator (AO) shows positive histogram bars, further supporting the bullish outlook. If buying pressure persists, DOGE may breach $0.0900 and aim for the psychological barrier of $0.1000.
Conversely, profit-taking actions could push DOGE below the descending trendline, initiating a bearish cycle. Such a scenario may lead to a breakdown below the $0.0817 support level, potentially extending losses to $0.0752 in a worst-case scenario.
Along with Dogecoin, its immediate competitor in the memecoin space – Shiba Inu – is also gearing up for a price surge ahead.
