Analysts speculate that if historical trends repeat, Dogecoin's price could reach $0.75 by January 2025.
On-chain data from Messari shows that whale addresses hold 1 million DOGE.
This reflects a similar accumulation trend during DOGE's rebound in 2021 and indicates growing confidence among large investors.
Dogecoin's price has stabilized around $0.40 after a strong increase. The current market pattern is very similar to Dogecoin's performance before its massive 8,000% rise in 2021, raising predictions that Dogecoin may surge significantly again.
After hitting a low in early August, Dogecoin's price has rebounded 480%, with 220% of the increase coming from Donald Trump's victory last month. Nevertheless, Dogecoin has been consolidating in a very narrow range between $0.39 and $0.48, resembling the pattern before a significant rise in 2021.
As mentioned above, 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. Furthermore, Dogecoin's weekly relative strength index (RSI) has entered the overbought zone above 70, which is a typical signal for potential price adjustments or consolidations.
However, in 2021, a similar overbought situation led to bullish momentum rather than a decline. If historical trends repeat, based on Fibonacci retracement forecasts, DOGE could reach the $0.75 target before January 2025, implying a potential price increase of 85%.
The number of Dogecoin whales accumulating continues to rise.
On-chain data also supports the price rise of Dogecoin as whales accumulate in large quantities. According to Messari, addresses holding 1 million or more DOGE now control 130.17 billion DOGE, a new all-time high. The increase in whale addresses indicates that large investors are increasingly confident in Dogecoin's further growth potential.
During the 2021 rebound, the supply of DOGE held by whales also saw a similar surge, with the number held by these addresses increasing from 110.31 billion to 112.46 billion.
Moreover, Elon Musk's ongoing influence remains a significant factor driving Dogecoin's price performance. Musk frequently tweeted in support of memecoin during the 2020-2021 rebound, which was key to its significant price increase.
DOGE community members deny the network attack allegations.
Andreas Kohl, co-founder of Sequentia Network, recently claimed responsibility for most of the Dogecoin network outages. In a post on X, this Bitcoin sidechain developer claimed he exploited a vulnerability called 'DogeReaper' that allowed him to remotely disrupt 69% of Dogecoin nodes.
Famous Dogecoin community member 'Mishaboar' pointed out that the 'DogeReaper' vulnerability exploited by Andreas Kohl was disclosed and patched in a node update released two weeks ago.
Mishaboar also questioned the reliability of the data Kohl used to support his claims. Kohl relied on Blockchair data, which indicated that the number of online Dogecoin nodes dropped from 647 to 205 after the alleged attack. However, Mishaboar pointed out that Blockchair's data is not comprehensive.
Additionally, Mishaboar emphasized that the Dogecoin network can operate smoothly even with a lower number of active nodes. Bitcoin developer Peter Todd expressed a similar view, stating that the network's decentralized design allows it to withstand such disruptions.
