Dogecoin rally to $1 imminent after recent bullish chart development — Analyst
2024.12.04 13:41
Dogecoin (DOGE) price has displayed resilience over the past two weeks with a range consolidation between $0.34 and $0.46 since Nov. 12. The memecoin is the sixth most traded asset by 24-hour volumes (excluding USDT), retaining overall market interest.
Dogecoin 1-day chart. Source: Cointelegraph/TradingView
With DOGE technicals becoming more favorable in the chart, multiple analysts predicted that the original meme token is approaching a breakout.
DOGE transactions in the $100,000 to $1 million range surge
While DOGE prices have oscillated sideways over the past two weeks, whale transactions worth over $100,000 and $1 million have progressively increased over the past few days. Data from Santiment highlighted that addresses executing transactions worth more than $100,000 and $1 million have collectively acquired over 240 million DOGE tokens in December.
Dogecoin transaction count chart. Source: X.com
This accumulation trends could be a trigger for the next leg of a DOGE price rally.
Dogecoin open interest chart. Source: CoinGlass
Similarly, futures traders are also maintaining their interest in DOGE’s movement. The memecoin’s open interest reached a new all-time high of $4.05 billion on Nov. 24. OI has dropped to $3.48 billion since then, but the relative involvement remains at all-time high levels.
Related: Crypto analyst says ‘flash crash likely’ as 24-hour liquidations hit $618M
Dogecoin could pull a “god candle”
Alongside onchain data, Dogecoin’s mid-term and long-term charts exhibit favorable setups, which has caught multiple analysts’ attention. Mikybull, an independent analyst, observed the formation of a rising wedge pattern, which is forming a bullish confluence with the on-balance volume indicator.
Dogecoin 2-day chart analysis by Mikybull. Source: X.com
The trader saw this as a potential opportunity and said,
“$DOGE is about to pull another god candle to $1.”
Similarly, Trader Tardigrade highlighted a historical pattern that has systematically played out in previous bull markets. The chart illustrated that the price action demonstrates a double bottom at the end of its previous cycle, followed by a breakout above the overhead resistance trendline.
Dogecoin monthly chart analysis by Trader Tardigrade. Source: X.com
Once a bullish close was confirmed, DOGE’s price has repeatedly undergone a parabolic rally. DOGE pulled off this bullish confirmation above the overhead trendline in November (as shown in the chart), opening the possibility of another strong rally.
Based on Elliot’s wave theory, Altstreet Bets, an anonymous altcoin trader, expected a 60% return to around $0.68- to 0.72 over the next few days, stating that “$DOGE is ready to run again.”
Related: Chainlink ‘god candle’ appears as LINK price soars 27% in 24 hours
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
