Dogecoin (DOGE) Price Analysis: Bullish Breakout Potential Emerges

Dogecoin (DOGE) is showing signs of a potential breakout. The cryptocurrency is currently forming a tight falling wedge pattern, a classic technical setup often considered bullish.

Dogecoin (DOGE) price rose 3% in the past 24 hours as it broke above the critical support level of $0.165. This breakout could open the door for a strong recovery with the prospect of tripling in value.

Meanwhile, increased whale accumulation could further fuel the rally, setting the stage for sustained bullish momentum in the coming days and weeks.

Moreover, the derivatives market is showing strength, hinting at improved trader sentiment, which could keep the meme coin in good stead.

Dogecoin Price Analysis: Bullish Breakout Potential Emerges

After a steep correction of over 70% from its all-time high of $0.69, Dogecoin (DOGE) is showing signs of a potential breakout. The cryptocurrency is forming a tight falling wedge pattern, a classic technical setup that often favors bullish reversals.

As the wedge’s boundaries converge, the price fluctuations are becoming smaller, indicating a decline in volatility. This could be a sign of traders becoming less decisive and the market preparing for a breakout in one direction or the other.

To traders, the wedge itself is bullish, but it’s the daily Relative Strength Index (RSI) that is really suggesting the bears could be losing their grip. The RSI, a technical indicator used to measure the magnitude of price changes over time, is showing bullish divergence.

This divergence occurs when the RSI is making lower lows while the price is making higher lows, suggesting that the downward momentum is slowing down, and buyers are beginning to exert more influence.

In the RSI chart, the oversold zone, usually defined as an RSI reading below 30, is often associated with strong selling pressure and the potential for a reversal. As the RSI approaches the oversold zone, it could indicate that the cryptocurrency has been subjected to sustained selling pressure, which might be nearing exhaustion.

As the sellers’ strength lessens, the buyers could step in and drive the cryptocurrency’s price upward.

Dogecoin price is now trading at $0.176 at the time of writing.

Dogecoin price broke above the crucial support level of $0.16 earlier this week as the meme coin bottomed out. At the same time, a prominent crypto analyst has revealed that “whales” have been massively accumulating Dogecoin (DOGE).

Prominent crypto analyst Ali Martinez has revealed that over a two-day period, whales purchased a total of 1.83 billion DOGE, rendering the meme coin in the green despite a turbulent period for the market.

According to a post shared on Monday, April 3, the bulk of the whale purchases occurred on March 31 and April 1, with a small portion also taking place on April 2. In total, these purchases amounted to approximately $640.5 million.

The revelation comes as retail investors appeared to be focusing their attention on newer meme tokens, while whales remained committed to accumulating the original meme coin.

“Despite the meme token frenzy that unfolded in March, with new meme coins like PEPE and BALD making headlines, it seems like whales weren’t interested,” said crypto analyst Ali.

According to the analyst, the meme token frenzy began around March 23, fueled by the creation of the PEPE token on April 18.

However, even before the meme token frenzy began, interest in Dogecoin had been steadily increasing among whales.

According to data from blockchain analytics firm Glassnode, as of April 1, the total amount of Dogecoin held by entities with balances above 10,000 tokens reached a 24-month high.

This surge in whale activity could be setting the stage for some notable price movements in the coming days and weeks.

Key Catalysts for DOGE Ahead

Dogecoin price has been subject to global macro developments and the escalating Trump tariff war over the past few months. However, the markets have started to look beyond it as Bitcoin price is showing strength while consolidating around $82,000 levels.

Moreover, traders are becoming bullish on cryptocurrencies again, as evident by the surge in futures open interest. According to data from crypto derivatives platform Coinglass, the total futures open interest rose by 5.62% in the past 24 hours to reach $2.77 billion.

The majority of the increase was driven by Dogecoin futures, which saw a surge of 34% to $1.50 billion. This indicates that traders are becoming more interested in trading Dogecoin futures.

The increase in futures open interest could be a sign that traders are becoming more optimistic on cryptocurrencies and are willing to take on more risk.

This optimism is also reflected in the cryptocurrency market capitalization, which rose by 1.36% to $2.56 trillion in the past 24 hours.