Chart analysis shows that the price of Dogecoin (DOGE) may soon recover to the highs of late 2024, with even greater upside potential expected in 2025.
Since Dogecoin fell to a low of $0.26 last week, it has rebounded to $0.33, forming a triangular consolidation pattern, which is expected to trigger a bullish breakout soon.
Therefore, in the coming days, the price of Dogecoin could temporarily rebound close to the recent high of $0.48.
However, it should be noted that the area between $0.37 and $0.38 may constitute an important technical resistance level, as this price range coincides with the 21-day and 50-day moving averages and aligns with several recent lows.
This positive market atmosphere could last until the end of the year. Why is that?
Most cryptocurrencies are currently gradually recovering from last week's market sell-off triggered by the Federal Reserve, mainly due to the Fed's interest rate forecasts being more hawkish than the market expected. However, although most mainstream cryptocurrencies remain well below levels prior to the Fed's hawkish meeting, it indicates that there is still room for further market recovery.
Currently, multiple favorable factors support the cryptocurrency market, especially as we approach a 'new golden age' for the U.S. and even the global cryptocurrency market. The soon-to-be-inaugurated Trump administration may strongly promote the adoption of Bitcoin and other major cryptocurrencies, particularly as he intends to establish a Bitcoin strategic reserve, a move that will undoubtedly further foster market development. In addition, Musk's 'New Government Efficiency Department (DOGE)' is set to be established under Trump’s leadership, which will undoubtedly inject new vitality into the Dogecoin and meme coin market, expected to lead the upcoming meme coin season.
DOGE whales are back in a buying frenzy!
In the past three days, whales have purchased 270 million DOGE, indicating an increase in market activity and suggesting that Dogecoin may recover from its recent price drop. The sharp rise in whale trading volume is closely related to Dogecoin's price fluctuations, indicating that these large holders have significant influence in the market.
Historical data usually indicates that such buying behavior by whales is often a precursor to market uptrends, suggesting that DOGE may have strong bullish signals.
This large-scale buying activity aligns with the upward price trend; if this trend continues, the likelihood of DOGE prices rising will further increase.
Whale-dominated market dynamics, especially involving large transactions, often increase buying pressure, thereby driving a broader rebound in the DOGE market.
The triple force pattern of DOGE price
By analyzing the daily chart of Dogecoin, it can be seen that its key trading pattern aligns with the Triple Force (PO3) strategy. This pattern roughly includes three phases: accumulation, manipulation, and distribution, which typically lasts for several weeks.
The accumulation phase began in early November, during which prices remained relatively stable with minor fluctuations, indicating that investors are quietly accumulating DOGE without significantly pushing prices up.
After entering mid-December, the market clearly entered a manipulation phase. During this phase, price fluctuations suddenly intensify, primarily aimed at eliminating weaker investors, usually by artificially lowering prices to test the patience and determination of new investors.
It is expected that Dogecoin will enter the final distribution phase. From historical trends, if this phase follows past patterns, prices could see significant increases, potentially approaching or exceeding previous highs, with speculative targets possibly reaching $1.
With recent market activities of Dogecoin, some market observers predict it will enter a bullish trend, and the heated discussions on social media along with the overall market trend may further drive the formation of this trend.
Possible price increases for Dogecoin in the future
Considering Trump’s potential return to the White House, it is highly likely that the Dogecoin market will rebound to recent highs in early 2025. Bullish investors hope to see Dogecoin rebound to its historical high from 2021 (above $0.70), and even expect it to break $1.00 for the first time.
However, does this mean that the rise of Dogecoin will reach a peak? Analyzing the historical cycles of Dogecoin shows that the current rebound may exceed many investors' expectations and requires more targets and perspectives. Since its establishment in 2014, Dogecoin has experienced three major market cycles, which may provide valuable clues for the trend in 2025.
When we connect the lows of the previous bear market with the previous highs and analyze using Fibonacci extensions, it can be observed that Dogecoin's rebound often significantly exceeds the 4.236 Fibonacci level. In the 2021 rebound, Dogecoin even surpassed this level by ten times.
From the low point of the 2022 bear market to the 4.236 Fibonacci extension level of the 2021 high, this indicates that Dogecoin should at least break the $3 mark per token in this cycle.
But historical experience shows that Dogecoin's price often exceeds this level. Given this situation, it is not unreasonable to expect the current round of Dogecoin prices to reach $1, of course, this implies a market capitalization of trillions of dollars, which may be a bit excessive.
