Dogecoin (DOGE) has recently shown promising technical signs that could pave the way for a significant price increase, with a prominent analyst predicting a potential 49% surge in the cryptocurrency’s value. Currently trading at $0.3625, DOGE has experienced a slight decline of 6% in the last 24 hours but has posted a more optimistic 14% increase over the past week. As the market continues to evolve, technical indicators suggest that Dogecoin might be on the brink of a bullish breakout.
According to crypto analyst Ali Martinez, Dogecoin is undergoing a bullish retest of a key breakout zone. Martinez highlighted recent chart patterns that suggest the cryptocurrency is poised for an upward move. DOGE had previously consolidated within a symmetrical triangle pattern, marked by converging trendlines. After breaking through the upper trendline around the $0.38 mark, the cryptocurrency entered a retest phase, revisiting the breakout zone around $0.36900.
Martinez points out that this retest zone aligns closely with the 0.618 Fibonacci retracement level at $0.38350. Fibonacci retracement levels are often used by traders to identify potential areas of support or resistance, and this particular level is seen as a critical point for confirming the continuation of bullish momentum. Should DOGE maintain its position above this level, the cryptocurrency is expected to move higher.
If the bullish trend continues, Dogecoin could test the 0.786 Fibonacci retracement level at $0.43000. From there, the cryptocurrency may see further resistance levels at $0.48500 and $0.54000, with a potential rise of nearly 49% from its current value. For this target to be realized, Dogecoin would need to move past its current price of $0.3625 and break through these levels of resistance.
Martinez’s analysis suggests that the crypto asset is well-positioned for growth, with the potential to significantly increase in value if it can maintain its momentum in the coming weeks. If buyers remain in control, the price of DOGE could climb steadily toward these key levels, signaling the beginning of a new bullish phase.
An additional factor contributing to the positive outlook for Dogecoin is increased whale activity. Over the past 48 hours, large wallets holding between 100 million and 1 billion DOGE have added a significant 1.83 billion tokens to their holdings. As of January 19, the cumulative holdings of these whales rose from 22.89 billion DOGE to 24.7 billion DOGE, indicating growing interest from institutional investors or individuals with large portfolios.
This surge in accumulation by major holders further supports the notion that Dogecoin could be in for a bullish breakout. Large-scale investors tend to make significant moves when they believe an asset has growth potential, and this trend suggests a more optimistic future for DOGE in the short term.
Further backing the bullish case for Dogecoin are the technical indicators currently showing positive momentum. The Accumulation/Distribution (Acc/Dist) line has risen to 45.77 billion, reflecting ongoing accumulation and lower selling pressure. Additionally, the Moving Average Convergence Divergence (MACD) indicator is signaling growing bullish momentum. With the MACD line currently above the Signal line, it indicates that the momentum is leaning in favor of buyers, further bolstering the potential for price gains.
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 a rise of up to 49%, potentially reaching $0.5400. The retest of key levels, coupled with strong accumulation from major investors, indicates that Dogecoin’s outlook is increasingly positive.
As the market continues to evolve, investors will be closely monitoring 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 surge in the coming months.
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