TLDR
Dogecoin price shows signs of potential correction before continuing uptrend
Whale activity and large transactions increasing, indicating institutional interest
Social dominance of DOGE reached a 5-month high
Analysts predict possible rally to new all-time highs based on historical patterns
Breakout from multi-year descending triangle pattern suggests upcoming price surge
The meme-inspired cryptocurrency Dogecoin (DOGE) is showing signs of a possible price surge, according to recent market analysis and on-chain data.
While the crypto market has experienced a general downturn due to Bitcoin’s recent correction, Dogecoin’s indicators suggest a potential rally may be on the horizon.
Dogecoin’s price chart currently displays a range-bound structure, with support around $0.1 and resistance at $0.115. Technical analysis indicates that DOGE may retest the $0.1 level before attempting another breakout.
Looking at $DOGE (Dogecoin)’s previous bull run performances, prices of it, with their similarities to prior climbs, can be getting ready for yet another monumental upside to new All Time Highs, and beyond !
Current All Time Highs are nearly +555% away at $0.73905… https://t.co/z8WOXibBns pic.twitter.com/CHmqr1qyjs
— JAVONMARKS (@JavonTM1) October 6, 2024
This potential dip could provide an opportunity for investors to accumulate DOGE before a possible upward movement.
On-chain metrics reveal growing interest from high-net-worth individuals and institutional investors. The number of large transactions involving DOGE has increased significantly in the past 24 hours, jumping from 122 to 296.
This surge in whale activity often precedes volatile price movements and is generally considered a bullish signal.
Derivative trading data from Coinglass shows that traders are overall bullish on DOGE.
The cumulative long liquidation leverage has outperformed shorts in the weekly timeframe, indicating that many traders anticipate a price increase after the current correction.
Dogecoin’s social dominance has also reached a 5-month high, suggesting increased interest and discussion around the cryptocurrency on social media platforms. This heightened social activity can attract new investors and potentially lead to price increases.
Dogecoin Price on CoinGecko
The surge in social dominance may be partly attributed to recent statements by Elon Musk, a well-known supporter of Dogecoin.
Musk mentioned that if he were to assist in a hypothetical Trump presidency, he would reduce the number of government agencies by nearly 80%, from 428 to about 99, under a plan he referred to as D.O.G.E.
JUST IN: D.O.G.E. to the moon? Elon Musk says he would cut almost 80% of government agencies down to about 99 from the current 428, if he were to help a Trump presidency. pic.twitter.com/6M64yjimjO
— Crypto Briefing (@Crypto_Briefing) October 8, 2024
Some analysts are making bold predictions about Dogecoin’s future price movements. Crypto trader Javon Marks suggests that DOGE might be preparing for another significant surge that could push it to new all-time highs, potentially exceeding its previous peak of $0.73905.
Another analyst, Ali Martinez, points to a breakout from a multi-year descending triangle pattern as a sign of a possible upcoming rally.
Martinez notes that historically, such breakouts have been followed by a 200% surge, then a 60% retracement before a bull run. Given that DOGE has retraced by about 65%, Martinez anticipates a significant upward movement in the short term.
The post Dogecoin’s Golden Opportunity: Why Experts Say DOGE Could Soar to New Heights appeared first on Blockonomi.
