- Dogecoin’s price has broken out of a six-month correction trend and surged to $0.101, driven by a spike in network activity and bullish market trends.
- With 1.93 million transactions last week and increased whale accumulation, DOGE could see further gains, potentially reaching up to $1.4, although a drop below $0.091 remains a risk.
Dogecoin (DOGE) has recently made headlines with a notable breakout from a six-month correction trend, giving bullish signals to investors. Last week, DOGE processed an impressive 1.93 million transactions, the highest volume seen since early July. This surge in network activity reflects a significant uptick in usage, contributing to a positive sentiment around the meme cryptocurrency.
Bullish Market Trends and Whale Activity
On Tuesday, the broader cryptocurrency market experienced a bullish rebound, primarily driven by speculation about a potential Federal Reserve rate cut. Bitcoin led the charge with a 4% surge, reaching $65,500. This momentum sparked a recovery across various altcoins, including Dogecoin, which reclaimed the $0.1 psychological level. This price movement aligns with a notable increase in network activity, positioning DOGE for further bullish potential.
Chart Patterns Indicate Further Upside
In recent months, Dogecoin faced challenges at the $0.091 support level, with three failed attempts to break below this point. These long-tail rejection candles indicate strong demand pressure, which has since pushed DOGE up by 10.3% to $0.11. The market cap has consequently risen to $14.76 billion.
The DOGE price has also pierced the resistance trendline of a falling-wedge pattern established in March 2024. This technical pattern usually precedes a strong rally once the asset gains enough momentum to break through resistance. Currently trading at $0.101, Dogecoin is testing support from the breached trendline.
Potential for Significant Price Movement
With sustained buying pressure, Dogecoin’s post-breakout rally could propel the price up by 13.8%, challenging the $0.115 resistance level. Further gains could see DOGE reach as high as $0.144. Additionally, the significant rise in network activity, highlighted by the 1.93 million transactions last week, underscores a resurgence in Dogecoin’s usage and could positively impact its price recovery.
Whale Accumulation and Market Sentiment
Dogecoin processed 1.93 million transactions last week, marking the highest weekly transaction count since early July.
— IntoTheBlock (@intotheblock) September 17, 2024
Although still well below the February peak, this uptick is a promising sign for the $DOGE network. pic.twitter.com/9WfNMAaEZo
Another positive indicator for Dogecoin is the increased accumulation by whale wallets. Large holders, those with between 1 million to 10 million DOGE, have amassed a total of 10.65 billion DOGE. This accumulation often signals a market bottoming and spreads positive sentiment, suggesting that whales are positioning for a future price increase.
However, caution is warranted. If Dogecoin’s price falls below the lower trendline, sellers could regain control and drive the price back to the $0.091 support level.
Dogecoin’s recent breakout and increased network activity suggest a promising price trajectory, potentially pushing the asset toward the $1.4 target. As always, investors should remain vigilant and consider both the bullish indicators and potential risks in their trading strategies.