Search
Close this search box.

Search

Dogecoin Price Tests $0.38350 Support: 49% Rally to $0.5400 on the Horizon?

Join us on :

Dogecoin Down 40%, But a 26% Rebound Sparks Hope—What’s Next?

Dogecoin (DOGE) is gaining traction as it approaches key technical levels. Analysts predict a potential 49% rally to $0.5400. Despite recent market turbulence, technical indicators and increased whale activity suggest a bullish breakout is on the horizon.

Dogecoin Shows Resilience with Strong Weekly Gains

Dogecoin’s price currently stands at $0.3774, reflecting a modest 0.97% gain in the last 24 hours. Over the past week, DOGE has surged by 16.77%, demonstrating its ability to recover swiftly amid broader market fluctuations. This consistent upward momentum highlights growing confidence among investors.

Key Technical Patterns Signal a Bullish Breakout

Crypto analyst Ali Martinez has identified compelling technical patterns that support Dogecoin’s bullish outlook. DOGE recently broke out of a symmetrical triangle formation, a chart pattern known for predicting significant price movements.

DOGE Price Analysis. Source| X

The breakout occurred at $0.38, where the price moved above the triangle’s upper trendline. This move indicates strong bullish momentum. Afterward, Dogecoin retested the breakout zone near $0.36900, aligning closely with the 0.618 Fibonacci retracement level at $0.38350. This level serves as a critical support point that could validate sustained upward momentum.

Fibonacci Levels Indicate Higher Price Targets

If DOGE maintains its position above this crucial support level, analysts expect it to rise to the 0.786 Fibonacci level at $0.43000. The next potential targets include $0.48500 and $0.54000. Reaching the $0.5400 target would mark a 43.08% increase from Dogecoin’s current price.

Whale Activity Strengthens Bullish Sentiment

In the past 48 hours, whale activity surrounding Dogecoin has surged dramatically. Wallets holding between 100 million and 1 billion DOGE have accumulated 1.83 billion tokens. By January 19, whale holdings jumped from 22.89 billion to 24.7 billion DOGE.

Read Also: 7-Day Price Analysis: Cardano’s (ADA) Rally to $1.13, the 7-Day Price Action You Can’t Miss!

This sharp increase indicates rising confidence among institutional investors and large holders, which often precedes significant price movements. Whale activity frequently signals the potential for major upward momentum in the market.

Technical Indicators Confirm Reduced Selling Pressure

Key technical indicators further support Dogecoin’s bullish momentum. The Accumulation/Distribution (Acc/Dist) line now stands at 45.77 billion. This value reflects steady accumulation and declining sell-offs, signaling that market participants are positioning for future gains.

The Moving Average Convergence Divergence (MACD) indicator also points to growing bullish momentum. The MACD line is currently at 0.0077, well above the Signal line at 0.0035. This classic bullish signal suggests a strong potential for upward price movement.

Will Dogecoin Reach $0.5400?

Dogecoin’s breakout from the symmetrical triangle, coupled with robust whale accumulation and positive technical indicators, creates a strong bullish narrative. If DOGE holds its support at $0.38350, a rally to $0.5400 appears likely in the short term.

However, investors should remain cautious in the highly volatile cryptocurrency market. Monitoring key levels and market trends will be essential to navigating potential risks. As market activity increases and community support grows, Dogecoin’s price trajectory in the coming weeks could reveal its long-term potential.

Read Also: 7-Day Price Analysis: Stellar (XLM) Soars, What This 7-Day Ride Means for Investors

Dogecoin is poised for a potential rally as it tests critical technical levels. Increased whale accumulation and strong technical indicators bolster the case for a bullish breakout. Although risks remain, the signs of upward momentum suggest that $0.5400 is within reach. As always, staying informed and monitoring market conditions will be vital for making sound investment decisions.

telegram

Share this :

Facebook
Twitter
LinkedIn
Telegram
WhatsApp

Introduction Cryptocurrencies have become global, challenging traditional financial systems and offering new opportunities. In this ever-evolving landscape, Bonk has emerged