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One expert believes that Dogecoin is on the verge of a major price rise not seen since December 2021 as the cryptocurrency landscape showed that it is ready for a breakout.
Cryptocurrency analyst Ali Martinez weighed in on the coin’s technical landscape, saying that Dogecoin’s price could rise as much as 200% in the coming weeks if the current trend continues.
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The price of Dogecoin is on the rise
Martinez noticed that Dogecoin He was able to break out of a multi-year downtrend, noting that this usually led to a rise in the price of the meme coin. He noted that historically, the price of the coin has risen by 200% following breakouts.
History often repeats itself, and #Dogecoin Maybe you do just that.
Familiar pattern: breakout from a multi-year descending triangle, 200% rally, 60% bounce, then a bullish wave.
After the recent decline of 65% $dawg He could be preparing for the next big gathering! pic.twitter.com/c93A4Fec7V
– Ali (@ali_charts) October 6, 2024
He predicted that Dogecoin will likely break the $0.2236 mark, a level not seen since December 2021.
In late September, the token experienced a breakout, causing prices to rise by 25%. However, Dogecoin failed to sustain the price rise, falling back to $0.11.
Other analysts shared the same predictions saying that if the coin succeeds in clearing the $0.1120 level, it is likely to break the $0.1315 mark easily this month.
However, analysts urged traders to be cautious about the potential rise in Dogecoin’s price, noting that a 60% pullback typically precedes previous breakouts before gaining momentum for an uptrend.
A major driver of growth
The increase in active Dogecoin addresses is the main reason why analysts are counting on the possibility of a significant price rise for the cryptocurrency.
Martinez revealed that active DOGE addresses hit their highest level in the past eight months, rising to 133,880.
active #Dogecoin The number of titles recently rose to 133,880 — an 8-month high! pic.twitter.com/DojEsDscXk
– Ali (@ali_charts) October 12, 2024
This rise in active addresses indicates that people are regaining interest in the coin, indicating a recent rise in the number of new users. This also means that additional traders help drive the growth of the token.
For example, around 110,000 investors flocked to Dogecoin, putting the token at the top. Cryptocurrency competitors Shiba Inu and Baby. The growth in trading volume showed that the coin is regaining its appeal for traders seeking to make a quick profit.
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Whale activity has increased
Experts also see whale activity as another driver of Dogecoin’s resurgence. In just over a week, whales, large holders of the meme coin, have amassed at least 2.07 billion DOGE, the most since January.
The rally demonstrated traders’ growing confidence in the token. In the above cases, huge buying usually leads to significant price adjustments, which serve as indicators of upcoming market trends. One analyst pointed out that whales do not make large purchases unless they see price growth in the future.
Featured image from CNBC, chart from TradingView
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