The massive transfer amount of Dogecoin reached $102 million, and analysts predict that as Dogecoin forms a bullish flag pattern, its price will soar by 400%.
The price of Dogecoin (DOGE) has shown a pullback in the past 24 hours after failing to successfully break through the intraday resistance level of $0.4602. During the price decline, whales in Dogecoin transferred over $100 million worth of Dogecoin, demonstrating strong market interest in this asset. With signs of recovery continuously appearing for Dogecoin, analysts predict that the price may see a 400% increase during the upcoming bull market cycle.
Whale trading activity highlights an increase in market activity.
Recent reports indicate that there have been two large-scale transactions involving Dogecoin, totaling over 249 million DOGE, valued at approximately $102 million. The first transaction involved 131 million DOGE being transferred from an unknown wallet to Coinbase, while the second transaction involved 117 million DOGE being transferred from Binance to an undisclosed wallet.
These large transfers may indicate that whales are preparing for possible price movements while also reflecting a significant increase in market interest.
An increase in activity from major holders usually indicates potential price changes. When the trading price of Dogecoin exceeds $0.40, many market participants are closely monitoring these large transfers, which could likely signal a breakout or pullback. Notably, recent trading volume surged by 77%, indicating growing demand for Dogecoin, possibly laying the groundwork for the next major movement.
Dogecoin and Bitcoin
The chart for Dogecoin clearly shows that it has significantly broken through a downtrend channel that has existed for years. This breakout is marked by strong upward momentum, preparing for a price increase in Dogecoin.
The measured target after the breakout has reached 0.00009375 Bitcoin, which means an increase of 2400% from the current level.
The MACD (Moving Average Convergence Divergence) indicator on the DOGE/USD daily chart strongly supports this bullish sentiment. The MACD line has successfully crossed above the signal line, indicating that upward momentum is continuously strengthening.
The histogram shows a slight consolidation phase—this is quite common during the early breakout stage. Moreover, the 200-day moving average provides strong support around $0.26, further enhancing the likelihood of sustained bullish momentum.
As of the time of writing, the correlation coefficient (CC) between Bitcoin (BTC/USD) and Dogecoin (DOGE/USD) is -0.80, indicating an inverse relationship.
As Bitcoin's price stabilizes around $95,000, Dogecoin seems ready to take advantage of the market liquidity shift towards altcoins, a common trend during bull market cycles.
Surge in daily active addresses
Data shows that in late November, the number of daily active addresses for Dogecoin significantly increased, peaking above 1.6 million. This is a remarkable growth compared to the low activity levels earlier this year.
Historically, a surge in active addresses typically occurs before a significant price increase, indicating renewed investor interest and network activity.
Additionally, whale activity is gradually heating up, with large transactions becoming increasingly frequent. This indicates that institutional investors or high-net-worth individuals are preparing for potential price movements.
The consistency between on-chain activity and technical breakout signals further supports Dogecoin's bullish outlook.
Dogecoin market sentiment and price predictions
The market sentiment surrounding Dogecoin remains optimistic, with social indicators reflecting an increasing trend in discussions and mentions of Dogecoin.
This aligns with the historical trend of tokens thriving in a hype-driven environment, further amplifying its potential upward space.
Using Fibonacci extensions from recent lows, the resistance level faced by Dogecoin is at $0.78 (2.618 Fibonacci level), with a long-term target at $1.79 at the 4.236 extension.
This prediction aligns with the breakout targets on the DOGE/BTC chart, enhancing the possibility of exponential growth. However, traders should remain cautious and avoid taking profits at key psychological levels (e.g., $1).
With strong support from positive technical indicators, Dogecoin is about to experience a major breakout.
With Bitcoin's consolidation, the inverse correlation between Dogecoin and Bitcoin further enhances its appeal, making it a standout performer in the altcoin space.
Bullish flag pattern signal breakout for DOGE
Technical indicators also suggest a bullish outlook for Dogecoin. The current chart pattern shows a bullish flag, a continuation pattern typically seen before an upward breakout. After a strong price increase, Dogecoin has entered a consolidation phase, with the current trading price close to $0.42. This consolidation may indicate a period of calm before another significant price increase.
Breaking this level may pave the way for further upward movement. In the context of anticipated Dogecoin ETF, it is possible for Dogecoin to approach the significant level of $0.50. On the other hand, if the price cannot maintain above $0.40, it may pull back to the lower support level of $0.35.
In summary, Dogecoin whales transferred $102 million worth of Dogecoin, indicating rising market interest and potential price shifts. Based on historical bull market cycles, analysts predict that Dogecoin could soar by 400%, targeting a price of $2.28. DOGE has formed a bullish flag, suggesting a breakout and potential rise to $0.65.
