The massive transfer amount of Dogecoin reached $102 million, and analysts predict that as Dogecoin forms a bullish flag pattern, its price could surge by 400%.
Dogecoin (DOGE) price has retraced in the past 24 hours after failing to break through the intraday resistance level of $0.4602.
During the price decline, Dogecoin whales transferred over $100 million worth of Dogecoin, indicating strong market interest in the asset. As Dogecoin continues to show signs of recovery, analysts predict that the price could rise by 400% in the upcoming bull market cycle.
Whale transactions indicate increased market activity
Recent reports indicate that two large transactions involving Dogecoin have occurred, totaling over 249 million DOGE, valued at approximately 102 million USD. The first transaction was 131 million DOGE transferred from an unknown wallet to Coinbase, while the second transaction involved 117 million DOGE transferred from Binance to an undisclosed wallet.
These large transfers may indicate that whales are preparing for possible price changes while also signaling increased market interest.
Increased activity from major holders often signals potential price changes. As Dogecoin's trading price exceeds $0.40, many market participants are closely monitoring these large transfers, which may indicate a breakout or retracement in price. Notably, the recent surge in trading volume by 77% suggests increased demand for Dogecoin, potentially laying the groundwork for the next major move.
Dogecoin and Bitcoin
The chart for Dogecoin shows that it has clearly broken out of a multi-year downtrend channel. This breakout is marked by strong upward momentum, setting the stage for a price increase in Dogecoin.
The measured trend forecast after the breakout targets 0.00009375 Bitcoin, implying a 2,400% increase from current levels.
The MACD (Moving Average Convergence Divergence) indicator on the DOGE/USD daily chart supports this bullish sentiment. The MACD line has crossed above the signal line, indicating strengthening upward momentum.
The histogram shows slight consolidation—common during the early breakout phase. Additionally, the 200-day moving average provides strong support around $0.26, enhancing the likelihood of continued bullish momentum.
At the time of writing, the correlation coefficient (CC) between Bitcoin (BTC/USD) and Dogecoin (DOGE/USD) stands at -0.80, indicating an inverse relationship.
With Bitcoin's price stabilizing around $95,000, Dogecoin appears poised to capitalize on the opportunity for market liquidity to shift toward altcoins, a common trend during bull market cycles.
Surge in daily active addresses
Data observation reveals a significant increase in the number of daily active addresses for Dogecoin in late November, peaking at over 1.6 million. This marks a significant rise compared to the subdued activity levels earlier this year.
Historically, surges in active addresses usually occur before significant price increases, indicating renewed investor interest and network activity.
Moreover, whale activity is heating up, with large transactions becoming increasingly frequent. This suggests that institutional investors or high-net-worth individuals are preparing for potential price movements.
Activity. The consistency between on-chain activity and technical breakout signals further supports the bullish outlook for Dogecoin.
Dogecoin market sentiment and price predictions
Market sentiment surrounding Dogecoin remains optimistic, with social metrics reflecting an increase in discussions and mentions of Dogecoin.
This aligns with the historical trend of tokens thriving in a hype-driven environment, amplifying their potential upside.
Using Fibonacci extensions from recent lows, Dogecoin faces resistance at $0.78 (2.618 Fibonacci level), with a long-term target of $1.79 at the 4.236 extension.
This prediction aligns with breakout targets on the DOGE/BTC chart, enhancing the possibility of exponential growth. However, traders should remain cautious about taking profits at critical psychological levels (such as $1).
With strong support from positive technical indicators, Dogecoin is poised for a major breakout.
With Bitcoin's consolidation, the inverse correlation of Dogecoin with Bitcoin further increases its appeal, making it a standout performer in the altcoin space.
DOGE bullish flag pattern signal breakout
Technical indicators also suggest a bullish outlook for Dogecoin. The current chart pattern indicates a bullish flag, a continuation pattern that typically occurs prior to an upward breakout. Following a strong price increase, Dogecoin has entered a consolidation phase, currently trading near $0.42. This consolidation may indicate a cooling-off period before another significant price rise.
Breaking this level could pave the way for further gains, with Dogecoin potentially approaching the $0.50 mark amid expectations for a Dogecoin ETF. Conversely, if the price fails to maintain above $0.40, it may retrace to a lower support level of $0.35.
In summary, Dogecoin whales transferred $102 million worth of Dogecoin, indicating rising market interest and potential price shifts. Meanwhile, based on historical bull market cycles, analysts predict that Dogecoin could surge by 400%, targeting a price of $2.28. DOGE is forming a bullish flag, suggesting a breakout and potential rise to $0.65.