Dogecoin (DOGE) has recently shown promising technical signs that could pave the way for a significant price increase, with one prominent analyst forecasting a potential 49% increase in the cryptocurrency’s value. Currently trading at $0.3625, DOGE saw a slight decline of 6% over the past 24 hours, but posted a more optimistic 14% increase over the past week. As the market continues to move, technical indicators suggest that Dogecoin could be on the verge of a bullish breakout.
New bullish test of the breakout zone
According to crypto analyst Ali Martinez, Dogecoin is undergoing a bullish retest of a key breakout zone. Martinez highlighted recent chart trends that suggest the cryptocurrency is poised for an upward move. DOGE had previously consolidated within a symmetrical triangular pattern, marked by converging trendlines. After breaking above the upper trendline around $0.38, the cryptocurrency entered a retest phase, revisiting the breakout zone around $0.36900.
Martinez highlights that this retest zone closely aligns with the Fibonacci retracement level from $0.618 to $0.38350. Fibonacci retracement levels are often used by traders to identify potential areas of support or resistance, and this particular level is considered a critical point to confirm continued bullish momentum. If DOGE maintains its position above this level, the cryptocurrency is expected to rise.
Price targets and future potential
If the uptrend continues, Dogecoin could test the Fibonacci retracement level of $0.786 to $0.43000. From here, the cryptocurrency could see new resistance levels at $0.48500 and $0.54000, with a potential upside of almost 49% from its current value. For this target to be achieved, Dogecoin would need to surpass its current price of $0.3625 and break through these resistance levels.
Martinez’s analysis suggests that the crypto asset is well positioned for growth, with the potential to significantly increase in value if it manages to maintain its momentum in the coming weeks. If buyers remain in control, DOGE price could steadily climb towards these key levels, signaling the start of a new bullish phase.
Whale activity and accumulation trends
An additional factor contributing to Dogecoin’s positive outlook is increased whale activity. Over the past 48 hours, large wallets holding between 100 million and 1 billion DOGE added 1.83 billion tokens to their holdings. As of January 19, the cumulative holdings of these whales increased from 22.89 billion DOGE to 24.7 billion DOGE, indicating growing interest from institutional investors or individuals with large portfolios.
This increase in accumulation by major holders further supports the idea that Dogecoin could experience a bullish breakout. Large-scale investors tend to take significant action when they believe an asset has growth potential, and this trend suggests a more optimistic future for DOGE in the near term.
Technical indicators show positive signs
Technical indicators currently showing positive momentum also support Dogecoin’s bullish case. The Accumulation/Distribution (Acc/Dist) line stood at 45.77 billion, reflecting continued accumulation and declining selling pressure. Additionally, the Moving Average Convergence Divergence (MACD) indicator signals increasing bullish momentum. With the MACD line currently above the Signal line, this indicates that momentum is tilting in favor of buyers, further strengthening the potential for price upside.
Conclusion
Dogecoin’s technical patterns and increased whale activity suggest that the cryptocurrency could be poised for significant growth in the near future. If the current bullish momentum continues, DOGE could see an upside of up to 49%, potentially reaching $0.5400. The retest of key levels, coupled with strong accumulation from major investors, indicates that the outlook for Dogecoin is increasingly positive.
As the market continues to move, investors will closely monitor whether DOGE can break through resistance levels and continue its upward trajectory. The combination of favorable technical indicators and whale interest presents a strong case for a potential price rally in the coming months.
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