Dogecoin (DOGE) Poised for a Breakout as Whale Activity and Bullish Patterns Intensify

DOGE price analysis: Meme coin at the cusp of a breakout?

output: Dogecoin [DOGE] has seen significant whale activity lately, with over 200 million tokens being quietly accumulated in just 48 hours. This massive demand has reignited investor optimism about DOGE’s potential for a breakout.

At press time, DOGE was trading at $0.3854, with a 1.61% hike over the last 24 hours. Notably, whale accumulation is often an early indicator of strong price movements, raising expectations for a bullish run in the coming days.

DOGE’s price history revealed that in January 2021, the memecoin saw a massive rally after a 56% correction. At the time of writing, Dogecoin appeared to be at the end of a 46% pullback, forming a similar pattern to its previous cycle.

As was the case in 2021, historical data seems to suggest that these corrections often paved the way for new price surges, especially during bullish phases. If the cycle repeats itself, we could see DOGE making a significant move upwards as early as next week, with resistance at $0.40 and $0.50.

DOGE’s price action has been displaying a classic cup-and-handle pattern on the 4-hour chart, with a breakout pushing DOGE towards the crucial resistance at $0.40. If this resistance is cleared, we could see DOGE heading towards the $0.50 price level.

However, if momentum slows down, the price might retrace to the $0.30 support level, allowing buyers to step in again. So, the next few days will be pivotal in determining whether DOGE can sustain its upward trajectory or not.

Dogecoin’s daily active addresses are currently hovering near 80,000, which is a sign of increased user activity and network engagement. This hike in daily active addresses is a positive sign of growing interest, as higher activity levels often translate to better price stability.

Additionally, sustained growth in network participation could attract more investors, further strengthening Dogecoin’s bullish case. However, a drop in activity might dampen investor sentiment and slow down the momentum.

The MVRV ratio had a reading of 161.66%, indicating that holders are sitting on considerable unrealized gains. While this alludes to potential profit-taking, whale accumulation and increased activity may limit selling pressure.

Additionally, if DOGE maintains its momentum, these profits could incentivize long-term holding. Hence, the MVRV ratio will be a critical metric to watch out for in the coming days.

Dogecoin’s strong whale activity, bullish price patterns, and rising network engagement suggested that it is well-positioned for a breakout. If the $0.40 resistance is breached, DOGE can target $0.50 and beyond in the near term.

Will the meme coin finally deliver a sustained rally? The next few weeks will reveal the answer.