Dogecoin Price Could Surge 85% If This Happens

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As a seasoned analyst with over two decades of market analysis under my belt, I find myself increasingly intrigued by the meteoric rise of Dogecoin (DOGE). The 350% surge this year has not only caught my attention but also sparked a sense of déjà vu – reminding me of the early days of Bitcoin‘s bull run.

This year, the price of Dogecoin (DOGE) has surged by an impressive 350%, aligning with the overall optimistic forecast for the crypto market. The bullish sentiment is further supported by Elon Musk’s Department of Government Efficiency (D.O.G.E.), and large investors, or “whales,” amassing DOGE. This positive momentum, combined with Bitcoin’s recent growth, might generate a favorable wind (tailwind) that could potentially boost Dogecoin’s price by as much as 85%.

Dogecoin Price Could Shoot 85% If DOGE Flip This Key Resistance

As a researcher, I’ve observed an interesting development in the Dogecoin market. Over the course of a week, we witnessed a significant bullish breakout in November. This breakout is particularly noteworthy because prior to this event, Dogecoin had been consolidating for over two years, with its price fluctuating between $0.050 and $0.2280.

dogecoin surpassed the significant barrier at $0.2278, reaching a new peak not seen since March 25. Breaking through this level was important as it disproved the developing double-top formation.

Additionally, it has surpassed its 50-week and 25-week moving averages, indicating that the bulls are dominating the market. Furthermore, the coin peaked at $0.4840, just slightly above the 38.2% Fibonacci Retracement level, showing a positive trend.

As a researcher, I’ve noticed some indications suggesting the gradual formation of a bullish flag chart pattern in Dogecoin. This pattern, quite common and significant, typically consists of an extended upward trend followed by a period of consolidation or sideways movement, resembling a flag on a chart.

Reaching beyond that resistance point could increase the likelihood of DOGE’s price reaching its record high of $0.7383, which represents an approximately 82% increase from its current value. If this occurs, there might be a chance for the coin to surge towards the significant psychological barrier at $1.

Conversely, if the price falls below $0.2813, which represents the 61.8% Fibonacci Retracement level, it would contradict the bullish theory. This could indicate that the bullish flag formation did not pan out, potentially leading to a test of support at $0.2278.

DOGE Price Needs Other Catalysts

Beyond its current surge, Dogecoin’s price may require additional factors to sustain its robust upward trend. Primarily, Bitcoin performing well is crucial, as this tends to boost gains across altcoins. Generally, altcoins tend to flourish when Bitcoin is experiencing a strong rally. This bullish phase for Bitcoin often coincides with an increase in the crypto market’s Fear & Greed Index.

Additionally, it’s crucial for Dogecoin to maintain its growth trend with larger investors (whales) consistently purchasing the coin, similar to their behavior over the past couple of months. According to Santiment’s data, these large investors have increased their Dogecoin holdings significantly within the last month, suggesting that they anticipate further price increases.

The price of Dogecoin might benefit from additional discussions about Elon Musk and his involvement with DOGE. In the past, Musk has significantly impacted Dogecoin, a cryptocurrency he holds in his investment portfolio. Moreover, some experts predict potential growth for DOGE due to the proposed DOGE ETF, which could potentially launch as early as 2025.

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2024-12-17 14:16