Dogecoin (DOGE) Price Analysis: Whales Accumulate, Technical Patterns Hint at Potential Rebound

Dogecoin has faced a rough patch, declining for four straight days and shedding over 25% in the past week. This downturn mirrors the struggles of other top cryptocurrencies.

Dogecoin has been battered recently, declining four days in a row and losing over 25% in the past week. This mirrors the struggles of other top cryptocurrencies. But beneath this downturn, there’s a silver lining: big investors, known as “whales,” are gobbling up large amounts of Dogecoin.

On February 7, analyst Ali Martinez highlighted that whales had accumulated more than 100 million Dogecoins in just 24 hours. Thisことからわかるようにsurge in whale activity suggests growing confidence and demand for the meme-based cryptocurrency.

Moreover, data from IntoTheBlock confirms this trend. In the past week, Dogecoin’s inflow metrics rose by 5.33%, indicating consistent short-term buying. On a broader scale, the 30-day inflow change is a staggering 323.86%, and over 90 days, inflows have shot up by 3,722.46%. These figures underscore a significant increase in whale interest over the past three months.

Technical Patterns Hint At Potential Rebound

While Dogecoin’s price is currently in a corrective phase, some technical analysts are spotting promising signs. Bitcoin investor Coinvo points to a clear rounding bottom pattern on Dogecoin’s weekly chart. This pattern, which involves a gradual price decline followed by consolidation and recovery, often signals a potential bullish breakout. The price has formed a rounded base, hinting at the possibility of a significant upward move as the pattern completes.

The dotted pink line on the chart marks the resistance level around $0.50, aligning with the pattern’s neckline. Breaking this critical level could trigger a parabolic price rally, consistent with the rounding bottom’s bullish implications.

Coinvo had earlier identified a corrective ABC wave pattern on the daily chart, stating, “Everything is pointing towards a DOGE move higher.” His analysis suggests that Dogecoin may be nearing the end of its current correction phase, increasing the likelihood of a bullish reversal.

Historical Trends And Future Projections

Meanwhile, another market analyst has used Dogecoin’s historical price movements to predict a possible peak in its current cycle. Observations from previous cycles show that Dogecoin has followed a recurring pattern, with peak prices appearing roughly every 1,442 days.

Past data shows that Dogecoin surged by 21,821% in its first recorded cycle, peaking in January 2018. The second cycle, ending in May 2021, saw a rise of 54,890% from its cycle low. Using these patterns, the analyst projects a price target exceeding $10. However, data from the chart implies an even more ambitious projection, estimating that Dogecoin could surge to $440. While such targets may seem extreme, past performance indicates that Dogecoin has the potential for explosive growth.

Dogecoin is still a highly volatile asset, but with increasing whale accumulation and bullish technical indicators, the potential for an upward movement cannot be overlooked. If the momentum continues, breaking the $0.50 resistance could be the key to unlocking a major rally in the coming months.

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