Dogecoin fractal hints at 85% DOGE price rally amid whale accumulation

Dogecoin Exhibits Familiar Price Pattern, Fueling Breakout Speculation

Dogecoin (DOGE) is displaying a price pattern reminiscent of its behavior before its remarkable 8,000% surge in 2021, igniting speculation about another significant breakout in the coming weeks.

Consolidation Parallels 2021

DOGE's price has witnessed a 480% rebound since its August 2024 lows, including a 220% rally following Donald Trump's presidential election victory in November. However, the cryptocurrency has since entered a consolidation period.

DOGE/USD Weekly Price Chart

Source: TradingView

DOGE is currently trading within a narrow range of $0.39-$0.48, as marked by the red circles on the chart above. This consolidation mirrors the pattern observed in early 2021, when Dogecoin experienced a steep upward movement followed by a sideways trend prior to a significant breakout.

Weekly RSI Supports Bullish Outlook

Another similarity between the 2021 and current price trends is the weekly relative strength index (RSI). As of December 2024, the weekly RSI has entered overbought territory above 70, typically signaling a price correction or prolonged consolidation. However, in 2021, similar overbought conditions preceded bullish continuation.

If history repeats itself, DOGE could initially target $0.75 by January 2025, as indicated by Fibonacci retracement projections, representing an 85% price increase.

Source: X

Whale Accumulation and Elon Musk's Influence

On-chain data further supports the bullish outlook. Messari reports that addresses holding at least 1 million DOGE now possess a record-breaking 130.17 billion DOGE. The rising whale supply indicates growing confidence among major investors in Dogecoin's upward trajectory.

DOGE Supply in Addresses with over 1 Million Tokens

Source: Messari

A similar surge in whale-held DOGE was observed during the 2021 rally, with the count increasing from 110.31 billion to a peak of 112.46 billion.

Elon Musk's impact on Dogecoin's performance continues to be significant. During the 2020-2021 rally, Musk's frequent tweets promoting the memecoin contributed heavily to its price surge. A comparable catalyst emerged recently with the launch of the humorously named Department of Government Efficiency (DOGE), which has sparked renewed speculative interest in DOGE.

Disclaimer: This article does not constitute investment advice or recommendations. All investments and trading involve risk, and individuals should conduct their own research before making any decisions.