Dogecoin [DOGE], the meme-inspired cryptocurrency, has faced market volatility over the past week, despite earlier attempts to rally.
While Dogecoin is up 2.7% over the past week, showing a slight uptrend, its recent performance has been disappointing.
The value of this Cryptocurrency has dropped over the past 24 hours, hitting a low of $0.1065 before recovering slightly to trade at $0.1071 at press time.
The decline, which represents a 1.6% drop over the past day, added to a sluggish trend that has left many investors skeptical about the asset's recovery potential.
DOGE Historical Pattern
One notable development comes from popular Cryptocurrency analyst, Trader Tardigrade, who shared an optimistic outlook on Dogecoin via X (formerly Twitter).
The analyst pointed to a technical pattern dubbed the âWilliams Alligator,â which suggests that Dogecoin could be nearing a breakout.
Trader Tardigrade noted that this pattern, which follows a breakout from a long-term downtrend, mirrors a similar consolidation phase that preceded the strong 2021 rally.
This observation has sparked discussions about whether Dogecoin is approaching another major rally in the near future.
Big increase coming?
While the technicals hint at upside potential, a deeper analysis of Dogecoin's fundamentals could provide a clearer view of the asset's trajectory.
One of the important indicators to watch is the Relative Strength Index (RSI), which measures the speed and change of price.
According to data from CryptoQuant, Dogecoin's RSI is at a neutral level of 38 at press time.
This indicates that the asset is neither overbought nor oversold, suggesting there is still room to move in either direction depending on market conditions.
Alongside RSI, whale activity can provide insight into market behavior.
Whale transactionsâthose involving the transfer of more than $100,000âare often seen as a measure of interest from institutional or high-net-worth investors.
Data from IntoTheBlock shows a significant drop in Dogecoin whale transactions this month, with the number dropping from 1.56k to just 1.1k at press time.
This drop could signal a decrease in interest or confidence from large investors, which could reduce the likelihood of an immediate price increase.
