Dogecoin’s price action over the past 24 hours has been ccharacterized by consolidation about $0.33. Notably, this stroll around the $0.33 mark allowed Dogecoin to hold above an important trendline that could make or break your trajectory from here.
Interestingly, Dogecoin is also exhibiting what looks like the formation of a peak bottom, according to recent technical analysis of price action. This observation comes from crypto analyst Trader Tardigrade, who shared insight into Dogecoin’s price structure and a positive outlook for the king of meme coins.
Dogecoin Holds Above Support Trendline
In a recent analysis On social media platform X, Trader Tardigrade noted that Dogecoin has maintained its position above a vital support trendline. This support trendline, as shown in the price chart below, is around $0.315 and has been a relevant area for Dogecoin since mid-December 2024. This support level appeared after Dogecoin briefly dipped below $0.27 on December 20 before rebounding higher. As Trader Tardigade pointed out, the structure that followed this breakout constituted what was a high selling point.
However, the sales peak might not be the end of the correction. Instead, Dogecoin could still be reaching a “sell peak,” which is a broader formation that sets the stage for a price correction. Currently, Dogecoin is retesting the support trendline at $0.315 after a recent rise to $0.39.
This new test is seen as a crucial step in the broader pricing structure. According to Trader Tardigrade, price action represents a “secondary test” (ST), a technical measure that serves to confirm the validity of the selling climax. By holding above this level, Dogecoin strengthens its chances of moving from correction to a prolonged recovery higher.
DOGE will show signs of strength
Investors are closely watching for signs of strength in Dogecoin, and on-chain data suggests some investors are perhaps already positioning themselves for the final boss, go up. Trader Tardigrade echoes this sentiment, noting that Dogecoin will eventually show a sign of strength in the surge.
This push is based on waiting for a strong rebound of the climax of the sale. In terms of a price targetTrader Tardigrade predicts that the next step for Dogecoin will be a push towards $0.66 in the coming weeks.
Speaking of investors positioning themselves for a rise in Dogecoin, on-chain data from Santiment shows that the Dogecoin whale is addressing have purchased over 470 million DOGE tokens in the last 48 hours. Thus, the total holdings of these whale addresses holding between 10 million and 100 million DOGE tokens now stands at 22.56 billion tokens, which is the highest in over 30 days.
At the time of writing, Dogecoin is trading at $0.332 and is up 0.5% in the last 24 hours.
Featured image from WSJ, chart from TradingView