Dogecoin (DOGE) price saw a retracement over the past 24 hours after failing to breach resistance at the intraday high $0.4602.
During the decline, Dogecoin whales transferred over $100 million worth of DOGE, signaling significant market interest in the asset. As the meme coin continues to show signs of recovery, analysts predict that DOGE could potentially see a 400% price rise during the next bull cycle.
Whale Transactions Indicate Increased Market Activity
Recent reports reveal that two significant transactions took place involving Dogecoininvolving over 249 million DOGE worth approximately $102 million. The first transaction saw 131 million DOGE transferred from an unknown wallet to Coinbase, while the second involved 117 million DOGE transferred from Binance to an undisclosed wallet.
These large transfers could suggest that whales are positioning themselves for possible price action, while also indicating increased market interest.
Increased activity from major holders often signals potential price changes. As DOGE trades above $0.40, many market participants are closely monitoring these large transfers, which may precede a price breakout or retracement. In particular, the recent overvoltage of 77% trading volume suggests an increase in demand for Dogecoin, potentially paving the way for the next big move.
Analyst predicts Dogecoin price rise of 400%
Market analyst Javon Marks speculated that the price of Dogecoin could increase by 400% based on historical trends and Fibonacci extension levels. According to Marks, the meme coin is in its third bull cycle, following similar patterns to previous cycles in 2017 and 2021. The analyst believes that DOGE Price could target the 1.618 Fibonacci extension, which currently sits at $2.28, up from its current price of around $0.42.
In his analysis, Marks points out that during previous bull cycles, Dogecoin went from its market low to the 1.618 Fibonacci extension level. In 2017, DOGE rose from $0.00009 to a high of $0.8750, while in 2021, the asset rose from $0.00168 to its current all-time high of $0.73995.
Marks predicts that a similar trend could play out this time, with DOGE rising from its current cycle low at $0.06004 to $2.28. This represents a potential upside of 457% from the current price.
Breaking DOGE bullish pennant formation signal
Technical indicators also signal a bullish outlook for Dogecoin. The chart pattern currently forming suggests a bullish pennant, a continuation formation that typically precedes a bullish breakout. After a strong price rally, DOGE has entered a consolidation phase, where it is currently trading near the $0.42 level. This consolidation may indicate a cooling off period before the price makes another significant move.
Breaking this trend could propel Dogecoin to higher levels. If price breaks key resistance at $0.45 and $0.50, it could test the projected target level of $0.65. This would align with the bullish structure seen in previous cycles, where DOGE saw significant upward moves after similar consolidations.
As Dogecoin continues to consolidate, traders and analysts are keeping an eye on key support and resistance levels. Immediate support for DOGE lies at $0.40, where the price has recently stabilized. If this level holds, DOGE may be able to break through the next resistance at $0.45.
A break above this level could pave the way for further gains, potentially bringing DOGE closer to the $0.50 mark. Dogecoin ETF anticipation. On the other hand, if the price fails to sustain above $0.40, there could be a pullback towards support levels below $0.35.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in cryptography and finance, holding a bachelor’s degree in actuarial science. Known for his incisive analysis and insightful content, he has a strong command of English and excels in conducting in-depth research and providing timely updates on the cryptocurrency market.
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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