Dogecoin (DOGE) Making a Comeback: Can It Reach $10 with Familiar Chart Patterns?

The post Dogecoin (DOGE) Making a Comeback: Can It Reach $10 with Familiar Chart Patterns? appeared first on Coinpedia Fintech News

While Dogecoin (DOGE) taking a back seat in the recent altcoin surge, the meme-favorite cryptocurrency is back in the spotlight. Analysts are drawing parallels between its recent subdued performance and the notable 2021 bull run, sparking speculation that DOGE could be on track to hit $10 in the upcoming bull market.

Dogecoin Eyeing a Mega Rally?

Crypto analyst Ali Martinez, known for insightful market observations, has pointed out intriguing similarities between Dogecoin’s recent price movements and those witnessed in 2020.

The price action of #Dogecoin is showing familiar patterns reminiscent of its 2020 behavior. Back then, $DOGE broke out from a descending triangle, entered a period of consolidation, and then skyrocketed by 28,770%.

Currently, #DOGE appears to be mirroring this pattern: having… pic.twitter.com/69yXnlYRJd
— Ali (@ali_charts) February 23, 2024

Meanwhile, the replica of history suggests a potential repetition of patterns, recalling how DOGE broke out from a descending triangle in 2020, entered a consolidation phase, and then experienced an exponential surge of 28,770%.

The current scenario mirrors this pattern, with Dogecoin recently breaking out of a descending triangle and entering a consolidation phase. Analysts believe this phase could be setting the stage for the next bull run.

Resistance at $0.089

Despite the optimistic outlook, the Bollinger Bands technical indicator suggests, that bulls face significant resistance near $0.089. A successful breakthrough beyond this level could trigger a substantial bullish surge, potentially aiming for the anticipated Dogecoin price target of $0.1.

However, investors have long been anticipating Dogecoin’s price to reach $1. During the last bull run, DOGE reached an all-time high of 66 cents but corrected almost 90% since then. As of now, dogecoin is trading at $0.083 with a market cap of $12.05 billion, Dogecoin remains above its 20-day Simple Moving Average (SMA).

Accumulation by DOGE Whales

Intriguingly, recent on-chain data sheds light on a unique approach taken by Dogecoin’s strategic whale investors amid the recent market dip. Rather than following the common trend of selling off assets, a specific group of whales, each holding at least 10 million DOGE tokens (~$800,000), has chosen the path of accumulation.

A visual representation through a Santiment chart illustrates the dynamic shifts in the balance of whale wallets, revealing a cumulative Dogecoin whale balance that now surpasses 15 billion DOGE tokens.