The massive transfer amount of Dogecoin reached 102 million USD, and analysts predict that as Dogecoin forms a bullish pennant pattern, its price is set to soar by 400%.
The price of Dogecoin (DOGE) has retraced in the past 24 hours after failing to break the intraday resistance level of $0.4602.
During the price decline, Dogecoin whales transferred over 100 million USD worth of Dogecoin, indicating strong market interest in the asset. As Dogecoin continues to show signs of recovery, analysts predict that its price could rise by 400% in the upcoming bull market cycle.
Whale transactions indicate increased market activity
Recent reports indicate that two large transactions involving Dogecoin have occurred, totaling over 249 million DOGE, valued at approximately 102 million USD. The first transaction was 131 million DOGE transferred from an unknown wallet to Coinbase, while the second transaction was 117 million DOGE moved from Binance to an undisclosed wallet.
These large-scale transfers may indicate that whales are preparing for potential price fluctuations, while also signaling increased market interest.
Increased activity from major holders often signals potential price changes. As Dogecoin's trading price exceeds $0.40, many market participants are closely monitoring these large transfers, which could indicate a breakout or pullback. Notably, recent trading volume surged by 77%, suggesting increased demand for Dogecoin, potentially laying the groundwork for the next major move.
Dogecoin and Bitcoin
The Dogecoin chart shows a clear breakout from a multi-year downtrend channel. This breakout is marked by strong upward momentum, setting the stage for price increases in Dogecoin.
The target for the measured move following the breakout is 0.00009375 Bitcoin, which means an increase of 2,400% from current levels.
The MACD (Moving Average Convergence Divergence) indicator on the DOGE/USD daily chart supports this bullish sentiment. The MACD line has crossed above the signal line, indicating strengthened upward momentum.
The histogram shows slight consolidation—this is common in the early breakout phase. Additionally, the 200-day moving average provides strong support around $0.26, enhancing the likelihood of sustained bullish momentum.
As of the time of writing, the correlation coefficient (CC) between Bitcoin (BTC/USD) and Dogecoin (DOGE/USD) is -0.80, indicating an inverse relationship.
With Bitcoin's price stabilizing around $95,000, Dogecoin appears ready to capitalize on the market liquidity shift to altcoins, a common trend in bull market cycles.
Surge in daily active addresses
By observing the data, it can be seen that in late November, the number of daily active addresses for Dogecoin significantly increased, peaking at over 1.6 million. This represents a notable growth compared to the subdued activity levels earlier this year.
Historically, surges in active addresses typically occur before significant price increases, indicating a resurgence of investor interest and network activity.
Moreover, whale activity is heating up, with large transactions becoming increasingly frequent. This suggests that institutional investors or high-net-worth individuals are preparing for potential price moves.
Movement. On-chain activity aligning with technical breakout signals further supports Dogecoin's bullish outlook.
Dogecoin market sentiment and price predictions
Market sentiment around Dogecoin remains optimistic, with social metrics reflecting an increase in discussions and mentions of Dogecoin.
This aligns with the historical trend of tokens thriving in hype-driven environments, amplifying their potential upside.
Using Fibonacci extensions from recent lows, the resistance level Dogecoin faces is at $0.78 (2.618 Fibonacci level), with a long-term target of $1.79 at the 4.236 extension.
This prediction aligns with the breakout targets on the DOGE/BTC chart, enhancing the likelihood of exponential growth. However, traders should remain cautious and avoid profit-taking at critical psychological levels (such as $1).
With support from positive technical indicators, Dogecoin is poised for a significant breakout.
With Bitcoin's consolidation, the inverse correlation of Dogecoin to Bitcoin further increases its appeal, making it a standout performer in the altcoin space.
DOGE bullish pennant pattern signal breakout
Technical indicators also suggest a bullish outlook for Dogecoin. The current chart pattern indicates a bullish pennant, which is a continuation pattern that typically appears before an upward breakout. Following a strong price increase, Dogecoin has entered a consolidation phase, trading close to $0.42. This consolidation may indicate a cooling period before another significant surge.
Breaking this level could pave the way for further upward movement, and with expectations of a Dogecoin ETF, it may approach the $0.50 mark. On the other hand, if the price fails to maintain above $0.40, it may pull back to the lower support level of $0.35.
In summary, Dogecoin whales transferred 102 million USD worth of Dogecoin, indicating rising market interest and potential price shifts. At the same time, based on historical bull market cycles, analysts predict that Dogecoin could soar by 400%, targeting a price of $2.28. DOGE is forming a bullish pennant, suggesting a breakout and potential rise to $0.65.