Dogecoin analysis suggests a potential breakout despite the crypto market downturn.
Dogecoin dropped 19.25% over the past week, hitting an intraday low of $0.1086.
An analyst predicts a 72X surge for DOGE, pushing its price beyond $10.
Dogecoin (DOGE) has been a major victim of the latest bearish momentum sweeping the crypto market. The meme coin leader tanked by 9% on Friday, coming dangerously close to losing a zero as it hit $0.1086. Over the past week, DOGE has lost over 19.25% of its value.
Despite this downturn, Dogecoin may be poised for a remarkable comeback, potentially surpassing its previous highs and making the current bearish retracement an attractive opportunity for investors.
Market analyst Javon Marks, using a logarithmic chart analysis, suggests that DOGE might be on the verge of a massive breakout. He predicts a possible 72X surge, which could propel its price beyond $1.
Over the years, $DOGE (Dogecoin)'s Log Breakouts (displayed) have ALWAYS led into massive upsides and prices of, have done so again with a break currently holding!Now, based on the previous 2 breakouts, each of these runs have consecutively gotten larger, and if we are to see… pic.twitter.com/AXljvJqtW0
— JAVON⚡️MARKS (@JavonTM1) July 31, 2024
Marks emphasized that historically, Dogecoin breakouts on logarithmic charts have consistently led to substantial gains. He pointed out that each of the past two breakouts has been progressively larger, and if this pattern continues, a Dogecoin price exceeding $10 with a greater than 7,200% bull run is conceivable.
Furthermore, analysis of different classes of Dogecoin holders over the past three months supports the outlook for a Dogecoin breakout rally. Whales, who held 42% of the supply in May, have been selling, reducing their holdings to 40.79% by August 1. In contrast, investors and retail traders have been actively buying DOGE at lower prices, increasing their holdings to 21.8% and 37.4% of the total supply, respectively.
Moreover, the number of addresses holding DOGE has grown from 6.43 million to 6.54 million during this period. Notably, the number of long-term holders has reached an all-time high of 4.26 million addresses, while the number of traders has significantly declined since February.
These findings align with expectations of an explosive breakout, as fewer traders and lower sell pressure create an opportunity for demand to push prices higher. However, the lack of significant Dogecoin whale activity could be a limiting factor for an truly explosive rally.
The post Dogecoin: A 72X Bull Run on the Horizon? Analyzing the Data appeared first on Coin Edition.
