As a seasoned crypto investor with a knack for spotting patterns and a portfolio that has weathered multiple market cycles, I must admit that the current Dogecoin scenario intrigues me. The symmetrical triangle pattern on the daily chart suggests a consolidation phase before a potential breakout, which could push DOGE toward $0.15 by the end of October. However, the recent breakdown below key moving averages and the significant supply at the $0.124 level pose challenges that cannot be ignored.
On Wednesday, the crypto market witnessed a sudden surge of selling force, driving Bitcoin towards a possible drop below $60k. Despite this general downward trend, Dogecoin demonstrated strength, registering a 0.4% increase for the day. The formation of a neutral candle indicates that Dogecoin’s sideways movement continues, but the accumulation of large investors (whales) and the impending breakout from a triangle pattern hint at a potential surge towards $0.15.
Can Dogecoin Price Break $0.15 by the End of October?
During the escalating conflict between Iran and Israel, the price of Dogecoin experienced a significant drop from $0.132 to $0.1, representing a 19% decrease. This decline caused the market capitalization of Dogecoin to shrink to approximately $15.75 billion. Upon examining the daily chart, it appears that this downward trend constitutes a bear phase within a symmetrical triangle formation pattern.
Starting from June 2024, these two trendlines that are moving towards each other have maintained a horizontal trend in this chart, with these lines serving as both resistance and support. In theory, this pattern causes a brief pause or correction within the existing trend, allowing it to build up strength again before making a decisive move following the breakout.
The drop in Dogecoin’s price below both its 100-day and 200-day Exponential Moving Averages may increase selling pressure, potentially leading to a 6% decrease that brings it back to the $0.1 psychological support level. If this support holds strong, it could prolong the current phase of consolidation, offering potential buyers a chance to profit from an uptick at approximately $0.122.
Should the Dogecoin price successfully surpass the upper trendline roughly in mid-October, the bulls might initiate a robust surge towards $0.15 before the end of the month.
Based on information from Santiment, it’s been observed that the count of Dogecoin owners holding between 1 million and 10 million DOGE coins has been consistently growing. As of now, this group collectively holds about 10.63 billion DOGE.
As a seasoned crypto investor, I’ve noticed an intriguing increase in whale holdings of Dogecoin since the controversial price swing in October 2024. This trend indicates a strong belief among the largest investors in Dogecoin’s promising future prospects. Historically, such a bullish pattern aligns with significant market lows and potential market reversals.
Yet, the $0.124 mark represents a significant hurdle, as it’s supported by approximately 44.79 billion Dogecoins amassed across 311,210 different wallets. This level aligning with resistance from a triangle formation might make it difficult for buyers to push through a strong enough breakout.
Thus, there’s a possibility that a reversal might prolong the period of Dogecoin price stabilization and increase the chance of a breakout from a triangular pattern.
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2024-10-10 01:30