Dogecoin (DOGE) Price Analysis: DOGE Holds Strong Above Support Trendline, To Show Signs Of Strength

Dogecoin (CRYPTO: DOGE) has seen its price consolidate around the $0.33 level over the past 24 hours. This consolidation has seen Dogecoin trading above an important trendline that could make or break its trajectory from here.

Also, Dogecoin is exhibiting what looks like the formation of a climax bottom, according to recent technical analysis of price action. This observation was made by crypto analyst Trader Tardigrade, who shared his thoughts on Dogecoin’s price structure and a positive outlook for the king of meme coins.

Dogecoin Holds Strong Above Support Trendline

In a recent analysis shared on social media platform X, Trader Tardigrade noted that Dogecoin has maintained its position above a crucial support trendline. This support trendline, as shown by the price chart below, is located around $0.315, and has been a key area of interest for Dogecoin since mid-December 2024. This support level arose after Dogecoin briefly broke below the $0.27 mark on December 20 before rebounding upwards. This move down, as pointed out by Trader Tardigade, formed a selling climax.

However, the selling climax might not actually be the end of the correction. Instead, Dogecoin might still be in the process of completing a “selling climax bottom,” which is a more extended formation that sets the stage for a price correction bottom. At present, Dogecoin is retesting the support trendline at $0.315 following a recent surge to $0.39.

This retest is seen as a critical step in the broader price structure. The price action here, according to Trader Tardigrade, forms a “secondary test” (ST), a technical move that serves to confirm the validity of the selling climax bottom. By holding above this level, Dogecoin strengthens its chances of transitioning from the correction into an extended recovery upward.

DOGE To Show Signs Of Strength

Investors are keeping an eye out for signs of strength in Dogecoin, and on-chain data suggests some investors may already be positioning themselves for the final boss move upwards. Trader Tardigrade also echoes this sentiment, noting that Dogecoin will eventually show a sign of strength in the surge.

This surge is based on the expectation of a strong bounce from the selling climax bottom. In terms of a price target, Trader Tardigrade projected that the next move for Dogecoin is a push towards $0.66 in the next few weeks.

Speaking of investors positioning themselves for an upwards move for Dogecoin, on-chain data from Santiment shows that Dogecoin whale addresses have bought over 470 million DOGE tokens in the last 48 hours. As such, the total holdings of these whale addresses holding between 10 million and 100 million DOGE tokens now stand at 22.56 billion tokens, which is the highest in over 30 days.

At the time of writing, Dogecoin is trading at $0.332 and is up by 0.5% in the past 24 hours.