Analyst Says Dogecoin in Bullish Retest of Breakout Zone as Large Investors Add 1.83 Billion Doge

One analyst suggests that Dogecoin (DOGE) is currently undergoing a bullish retest of its breakout zone, with 49% upside potential to $0.5400.

Dogecoin (DOGE) has recently experienced significant volatility, marked by gains and losses. The cryptocurrency is trading at $0.3625, reflecting a 6% decline over the past 24 hours. However, it saw a 14% increase over the past week, indicating mixed trends.

These fluctuations occur as attention turns to Donald Trump’s meme coin, TRUMP, which soared more than 41,000% over the weekend.

Dogecoin Patterns Suggest Bullish Momentum

A recent painting analysis by Ali Martinez on X reveals key technical patterns that support a bullish outlook for Dogecoin. According to its chart, DOGE was previously consolidated in a symmetrical triangle, defined by converging trendlines.

DOGE has broken above the upper trendline of the triangle, showing strong bullish momentum. The breakout occurred near the $0.38 level. Following this, the crypto entered a retesting phase, revisiting the breakout zone around $0.36900.

This area closely aligns with the Fibonacci retracement level from $0.618 to $0.38350. Martinez sees this level as a key area to confirm continued bullish strength.

If buyers regain control, DOGE could rebound towards the Fibonacci level of $0.786 to $0.43k, with further potential to test $0.48500 and possibly $0.54k. To move from the current price of $0.3625 to $0.5400, Dogecoin would need to rise by approximately 48.97%.

Increased accumulation of whales

Recent whale activity has further fueled interest in Dogecoin price movements. By a separate post According to Martinez, in the last 48 hours, large wallets holding between 100 million and 1 billion DOGE added 1.83 billion tokens to their holdings.

Since January 19 cumulative possessions of whales jumped to 24.7 billion DOGE, from 22.89 billion two days earlier. This increase is evident in the graph highlighting the sharp increase in whale activity over the period.

While everyone focuses on $ASSETwhales bought 1.83 billion #Dogecoin $DOGE in the last 48 hours! pic.twitter.com/ozznJzflg2

– Ali (@ali_charts) January 19, 2025

Positive dynamics Monday

Additional analysis Dogecoin performance reveals bullish trends in key technical indicators. The Accumulation/Distribution (Acc/Dist) line, now at 45.77 billion, reflects steady accumulation and reduced selling pressure.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows increasing bullish momentum. The MACD line, currently at 0.0077, remains above the Signal line at 0.0035.