An analyst suggests that Dogecoin (DOGE) is currently undergoing a bullish retest of its breakout zone, with a potential for a 49% rise to $0.5400.
Dogecoin (DOGE) has experienced significant volatility recently, marked by gains and losses. The cryptocurrency is trading at $0.3625, reflecting a 6% decline over the past 24 hours. However, it has seen a 14% increase over the past week, indicating mixed trends.
These fluctuations come as attention turns to Donald Trump’s meme coin, TRUMP, which has soared by over 41,000% over the weekend.
Dogecoin Patterns Suggest Bullish Momentum
A recent chart analysis by Ali Martinez on X reveals key technical patterns that support a bullish outlook for Dogecoin. According to his chart, DOGE was previously consolidated within a symmetrical triangle, which is defined by converging trendlines.
DOGE broke above the triangle’s upper trendline, showing strong bullish momentum. The breakout occurred near the $0.38 level. Following this, the crypto entered a retest phase, revisiting the breakout zone around $0.36900.
This zone aligns closely with the 0.618 Fibonacci retracement level at $0.38350. Martinez observes this level as a key area for confirming continued bullish strength.
Should buyers regain control, DOGE could rally toward the 0.786 Fibonacci level at $0.43000, with further potential to test $0.48500 and possibly $0.54000. To rise from the current price of $0.3625 to $0.5400, Dogecoin would need to increase by approximately 48.97%.
Increased Whale Accumulation
Recent whale activity has further fueled interest in Dogecoin’s price movements. Per a separate post by Martinez, over the past 48 hours, large wallets holding between 100 million and 1 billion DOGE added 1.83 billion tokens to their holdings.
As of January 19, cumulative whale holdings surged to 24.7 billion DOGE, up from 22.89 billion two days earlier. This increase is evident in the chart highlighting the sharp rise in whale activity over the period.
While everyone focuses on $TRUMP, whales bought 1.83 billion #Dogecoin $DOGE in the last 48 hours! pic.twitter.com/ozznJzflg2
— Ali (@ali_charts) January 19, 2025
Positive Momentum on Monday
Additional analysis of Dogecoin’s performance reveals bullish trends in key technical indicators. The Accumulation/Distribution (Acc/Dist) line, now at 45.77 billion, reflects steady accumulation and reduced selling pressure.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows growing bullish momentum. The MACD line, currently at 0.0077, remains above the Signal line at 0.0035.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
