Dogecoin's price volatility has attracted significant attention recently, with patterns like Cup and Handle, whale activity, and historical bullish fractals indicating potential price volatility. Although this meme coin has shown signs of decline and recovery, its future remains uncertain, with analysts predicting scenarios ranging from significant collapse to unprecedented price surges.

Dogecoin price trapped in Cup and Handle pattern

Dogecoin price is consolidating near the $0.30 mark after a month of more than 21% decline. A Cup and Handle pattern identified by a TradingView analyst, Cryptechcapital, indicates the potential for a bearish breakout. Typically a bullish indicator, this pattern on Dogecoin's chart suggests a significant drop below $0.20 as part of Wave 4 in the Elliott Wave cycle.

Wave 4 corrections often retrace a significant portion of Wave 3's gains, and if this trend continues, Dogecoin may face downward pressure in the short term. However, analysts predict the price will recover to Wave 5, potentially pushing prices back to $1 after the correction ends.

Bullish fractal charts indicate a potential price increase of 7,500%

In contrast to the bearish outlook, cryptocurrency analyst Ali Martinez highlights a historical fractal pattern indicating that Dogecoin could rise to $23. Fractals, recurring patterns in price charts, have consistently propelled Dogecoin to all-time highs. For instance, the meme coin's breakout in 2021 pushed its price to $0.70.

According to Martinez, the current setup reflects past bullish trends, with Dogecoin likely to increase by 7,500%. This forecast depends on maintaining momentum above key resistance levels, highlighting the potential for strong upward movement in the coming months.

Whales accumulate over 90 million DOGE

Adding optimism to Dogecoin's outlook is the recent increase in whale activity. In the past 48 hours, whales have accumulated over 90 million DOGE, signaling long-term confidence despite market volatility. Historically, such whale movements have preceded major price surges, indicating that Dogecoin may be preparing for a bullish reversal.

Whale accumulation at $0.30 reinforces its support base, but breaking this level could lead to a deeper downtrend, potentially reaching $0.20. However, the current consolidation phase could serve as a foundation for new momentum.

As of now, Dogecoin is trading at nearly $0.316, reflecting a slight daily increase but not enough to generate weekly profits. Analysts observe a tug-of-war between buyers and sellers, with strong support at $0.30 and resistance at $0.37. Breaking these levels is crucial to determining Dogecoin's next move.

On a broader scale, Dogecoin continues to be ranked as the largest meme coin with a market capitalization of $47.4 billion. Despite bearish market sentiment, analysts remain optimistic about the potential for regaining upward momentum, especially with increasing speculation around a possible Dogecoin ETF.

Future prospects of Dogecoin: Collapse or price increase?

The price trajectory of Dogecoin is at a critical juncture. The formation of the Cup and Handle pattern and whale accumulation suggests short-term uncertainty but long-term optimism. Historical data and bullish fractals indicate a potential price increase to $23, representing a 7,500% rise.

However, breaking the $0.30 support level could trigger a deeper correction down to $0.20 before any significant recovery occurs. As the broader market braces for potential turmoil, Dogecoin investors must monitor key levels and whale activity to navigate upcoming price fluctuations.

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