After a long stretch of muted price movement, the original meme coin Dogecoin (DOGE) has finally entered a position where it could prepare for a parabolic upsurge. Based on a classic bullish reversal setup, the DOGE price looks well-positioned to gain an impressive 50%.
DOGE’s Technicals Flip Bullish
A pseudonymous technical analyst who goes by the online alias Trader Tardigrade shared in a post on X that Dogecoin has been trading inside a falling wedge pattern. This structure is often characterized by the asset’s price sea-sawing inside the area defined by two descending, converging trendlines.
For the uninitiated, a falling wedge setup is typically a bullish reversal structure that resolves after the price pushes past its upper trendline and soars to a length equal to the maximum distance between its upper and lower trendline.
Trader Tardigrade observed that Dogecoin shows early signs of breaking out of the falling wedge pattern, increasing the likelihood of a strong bullish rebound. This suggests that the breakout is not fully confirmed, but with the crypto’s price treading around the upper trendline, hopes are high for a major recovery.
The pundit notes that Dogecoin has historically rallied following a breakout from a falling wedge pattern, and there is no reason why this time will be different. The doggy-themed crypto is currently changing hands for $0.1194, still 83.7% below its May 2021 high of $0.7316. However, this could swiftly change if the breakout from the declining wedge pattern is confirmed.
#Dogecoin monthly chart shows early sign of breakout to a Falling Wedge, which kicks off the start of $DOGE season The pattern is almost the same as last two cycles.There's no reason for this time is different.Send $DOGE to $1.6, Doge fam pic.twitter.com/snqNsDpIhO
— Trader Tardigrade (@TATrader_Alan) September 29, 2024
Trader Tardigrade is eyeing a northward march toward the ambitious $1.6 mark, representing a roughly 1,200% rise from its current price.
Dogecoin Whales Return To Accumulation
Dogecoin is also seeing aggressive accumulation from its wealthiest investors.
As recently reported by ZyCrypto, some DOGE whales purchased a whopping 1.4 billion coins within a brief 48-hour window, valued at $140 million at the time. This trend underscores the soaring bullish sentiment among whales in anticipation of a major upswing.
Whales can greatly influence a crypto’s price action because of the large amount of market-moving capital. Traders often observe whale buying/selling patterns for cues on a cryptocurrency’s short-term price trajectory.
