Dogecoin price forms a fractal pattern, expected to break through significantly
Analysts speculate that if historical trends repeat, the price of Dogecoin could reach $0.75 by January 2025.
Messari's on-chain data shows that whale addresses hold 1 million DOGE.
This reflects a similar accumulation trend during the Dogecoin rebound in 2021, indicating growing confidence among large investors.
The price of Dogecoin has stabilized around $0.40 after a strong rise. The current market pattern is very similar to Dogecoin's performance before its significant 8,000% rise in 2021, sparking predictions of another substantial increase in Dogecoin.
After reaching a low point in early August, Dogecoin's price has rebounded 480%, with 220% of the increase coming from Donald Trump's victory last month. Nonetheless, Dogecoin has been consolidating within a very narrow range of $0.39 to $0.48, with a pattern similar to that before the significant rise in 2021.
As mentioned, the current consolidation phase of Dogecoin's price is similar to the consolidation phase in early 2021, when the meme coin experienced a massive breakout after a period of sideways trend. Additionally, Dogecoin's weekly Relative Strength Index (RSI) has entered the overbought zone above 70, which is a typical signal for potential price adjustment or consolidation.
However, in 2021, similar overbought conditions led to sustained bullish momentum rather than a decline. If historical trends repeat, according to Fibonacci retracement forecasts, DOGE could reach the target of $0.75 before January 2025, implying a potential price increase of 85%.
Dogecoin whale accumulation continues to increase
On-chain data also supports the rising price of Dogecoin, as whales accumulate significantly. According to Messari, addresses holding 1 million or more DOGE now control 13.017 billion DOGE, reaching an all-time high. The increasing number of whale addresses indicates that large investors are optimistic about Dogecoin's further growth potential.
During the rebound in 2021, the supply of DOGE held by whales also saw a similar surge, with the amount held by these addresses rising from 11.031 billion to 11.246 billion.
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