The originator of Meme coin: DOGE
DOGE (Department of Government Efficiency) has the same name as the ancestor of meme coins, Dogecoin (also commonly known as Dogecoin in Chinese).
Dogecoin (DOGE), as the pioneer of meme coins, was inspired by the then-popular “Doge” emoticon package (the prototype was a Shiba Inu named Kabosu).
Dogecoin was founded in 2013 by software engineers Billy Markus and Jackson Palmer. At the beginning, they hoped to create a lighthearted cryptocurrency to satirize the hype in the cryptocurrency market at the time. Dogecoin immediately achieved great success after its launch, and was warmly welcomed on websites such as Reddit, and was also used as a reward tip.
At the same time, Musk also has a deep relationship with Dogecoin. In April 2019, Musk tweeted that Dogecoin is his favorite cryptocurrency and thinks Dogecoin is "cool."
On the (Saturday Night Live) show in May 2021, Musk called himself the "Dogefather" and called Dogecoin the "people's cryptocurrency." As time went by, Musk gradually became deeply involved with Dogecoin, and even became the spokesperson of Dogecoin in public perception.
To date, DOGE has gone through four bull and bear cycles, but it still sits firmly in the top ten of the cryptocurrency market capitalization.
Dogecoin Price Breaks Out of Legendary Pennant Pattern
In an X (formerly Twitter) post on Nov. 11, cryptocurrency analyst Trader Tardigrade revealed a major update on Dogecoin (DOGE) price dynamics. According to the analyst, the Dogecoin price has officially broken out of the “Legendary Bull Pennant” pattern.
The analyst shared a price chart illustrating Dogecoin’s price action from 2019 to date. Trader Tardigrade highlighted that Dogecoin started forming this unique triangle pattern in 2021, when the meme coin was gaining popularity.
However, as the analyst points out, 2024 will be a big year as Dogecoin price has broken out of a bull pennant pattern, marking a new bullish phase for the popular meme-based cryptocurrency. The Bull Pennant pattern is a technical indicator that is often associated with a potential uptrend, and according to the cryptocurrency analyst, Dogecoin could be on the verge of a major price increase to $15.
While this price target may sound overly ambitious to some investors, it is important to note that in just one month, Dogecoin has already gained 260.94% and is still rising. Today, Dogecoin has surged 44.69% and its market cap is approaching the $60 billion mark. Dogecoin recently broke out of the Bull Pennant pattern, which can be attributed to the confluence of bullish factors that have driven its price up over the past few weeks. SpaceX CEO Elon Musk's D.O.G.E proposal and the 47th President of the United States, Donald Trump, supporting Musk, have driven a shift in market sentiment, pushing Dogecoin prices to new highs. The popular meme coin is now achieving gains not seen since the last bull run four years ago.
If these bullish factors continue to drive Dogecoin and the memecoin maintains its momentum, its price could make a new ATH this cycle. As of this writing, Dogecoin is trading at $0.4, having more than 2x higher earlier this month.
Dogecoin faces resistance
Dogecoin (DOGE) has recently surged higher, breaking above $0.320 to as high as $0.4342. However, as with many price surges, resistance levels came into play and Dogecoin began to cool down. Currently, Dogecoin is holding above $0.3650 and is stabilizing around the 100 hourly simple moving average, which is generally a positive sign in technical analysis.
However, there are strong resistance levels at $0.400 and $0.4150 ahead. These levels will be crucial if Dogecoin wants to move higher, possibly to $0.4500 or even $0.4650. If it manages to break through these barriers, it could signal another rally. But if the price struggles at these levels, Dogecoin might find itself falling back.
DOGE Whale Activity
It’s an interesting time for Dogecoin investors right now. According to IntoTheBlock, about 96% of Dogecoin holders are currently in profit, with only 2% losing money. These data suggest that the Dogecoin holder base is solid and that they are all happy long-term investors. But some big players (often referred to as whales) hold short positions slightly higher than the current price of Dogecoin, suggesting that they don’t believe that Dogecoin will break out immediately.
These whales are important because they often set price zones to keep DOGE intact. Their cautious approach could indicate that they are waiting for stronger support below before backing another climb higher.
Technology Trends and Support Areas
Technical analysis is also throwing up some helpful signals. A trend line is forming near $0.3870, which coincides with the 61.8% Fibonacci retracement level of Dogecoin’s recent highs and lows. The area around $0.3870 could act as a strong support level where Dogecoin would remain stable if it faces more pressure.
However, if Dogecoin breaks below this level, it could test support as low as $0.3420 or even drop towards $0.3150. Therefore, while there is a clear path for further gains, a break below these levels could signal a short-term correction.
expect
The recent rally of Dogecoin has attracted a lot of attention and the market is certainly excited. However, this may not be a clear-cut rally given the resistance ahead and some caution shown by whale activity. If Dogecoin can hold above its key support area, we may see it attempt higher prices soon. However, a break below $0.3420 may cause a short-term pause in the rally.
As is often the case with cryptocurrencies, the future of Dogecoin is full of uncertainty, but its current price action offers investors some strategic dimensions worth keeping a close eye on. As Bitcoin approaches $100,000, expectations are high for Dogecoin to hit new highs.
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