The price of Dogecoin (DOGE) has retraced in the past 24 hours after failing to break through the intraday resistance level of $0.4602.
During the price decline, Dogecoin whales moved over $100 million worth of Dogecoin, indicating strong market interest in the asset. As Dogecoin continues to show signs of recovery, analysts predict that the price of Dogecoin could rise by 400% in the upcoming bull market cycle.
Whale transactions indicate increased market activity
Recent reports indicate two large transactions involving Dogecoin, totaling over 249 million DOGE, valued at approximately $102 million. The first transaction involved 131 million DOGE being transferred from an unknown wallet to Coinbase, while the second transaction involved 117 million DOGE being moved from Binance to an undisclosed wallet.
These large-scale transfers may indicate that whales are preparing for potential price movements, while also suggesting increased market interest.
Increased activity from major holders usually signals potential price changes. As Dogecoin's trading price exceeds $0.40, many market participants are closely watching these large transfers, which may indicate a breakout or a pullback. Notably, the recent trading volume surged by 77%, indicating rising demand for Dogecoin, potentially laying the groundwork for the next big move.
Analysts predict that the price of Dogecoin will rise by 400%
Market analyst Javon Marks speculates that based on historical trends and Fibonacci extension levels, the price of Dogecoin could increase by 400%. According to Marks, the meme coin is in its third bull market cycle, similar to the previous cycles of 2017 and 2021. The analyst believes that Dogecoin's price could target the 1.618 Fibonacci extension level, currently at $2.28, above the current price of about $0.42.
Marks noted in his analysis that during previous bull market cycles, Dogecoin soared from market lows to the 1.618 Fibonacci extension level. In 2017, Dogecoin rose from $0.00009 to a peak of $0.8750, while in 2021, the asset increased from $0.00168 to its current all-time high of $0.73995.
Marks expects a similar trend may occur this time, with DOGE rising from the current cycle low of $0.06004 to $2.28. This means an upside potential of 457% from the current price.
DOGE bullish flag pattern signals breakout
Technical indicators also suggest a bullish outlook for Dogecoin. The current chart pattern indicates a bullish flag, which is a continuation pattern that typically occurs before an upward breakout. After a strong price increase, Dogecoin entered a consolidation phase, currently trading close to $0.42. This consolidation may indicate that the price will experience a period of calm before another significant rise.
A breakout from this pattern could propel Dogecoin higher. If the price breaks through the key resistance levels of $0.45 and $0.50, it may test the projected target level of $0.65. This would be consistent with the bullish structure observed in previous cycles, where Dogecoin experienced significant increases after similar consolidations.
As Dogecoin continues to consolidate, traders and analysts are closely watching key support and resistance levels. The immediate support level for Dogecoin is at $0.40, with the price recently stabilizing at this level. If this level is maintained, Dogecoin may be able to break through the next resistance level of $0.45.
A breakout at this level may pave the way for further price increases, with Dogecoin potentially approaching the $0.50 mark in the context of anticipated Dogecoin ETFs. On the other hand, if the price fails to hold above $0.40, it may pull back to the lower support level of $0.35.
