Dogecoin (DOGE) has risen 350% this year, in line with the overall bullish outlook for the cryptocurrency market. Elon Musk's efficiency department (DOGE) and whale accumulation of DOGE add credibility to this outlook. This bullish momentum, combined with Bitcoin's recent performance, could create a tailwind that drives Dogecoin's price up by 85%.
If Dogecoin breaks through this key resistance level, its price could rise by 85%.
The weekly chart shows that Dogecoin's price experienced a strong bullish breakout in November. This is a significant breakout as it has been consolidating between $0.050 and $0.2280 for more than two years.
Dogecoin has currently broken through the key resistance level of $0.2278, which was the highest volatility on March 25. Breaking through this level is crucial as it invalidates the double top pattern that is forming.
It has also surged above the 50-week and 25-week moving averages, indicating that bulls are in control. The token has also surged to a high of $0.4840, slightly above the 38.2% Fibonacci retracement level.
There are signs that Dogecoin's price is slowly forming a bullish flag pattern. This is a popular continuation signal characterized by a long vertical line and some consolidation.
Therefore, breaking through this resistance level will increase the likelihood of DOGE's price rising to its all-time high of $0.7383, which is about 82% higher than the current level. If the token surges to the key psychological level of $1, this move will increase its likelihood.
On the other hand, falling below $0.2813 (the 61.8% Fibonacci retracement level) would invalidate the bullish argument. This means that the bullish flag pattern fails and risks the token retesting the support level of $0.2278.
DOGE's price needs additional catalysts.
Furthermore, Dogecoin's price needs additional catalysts to continue its strong upward movement. First, it needs Bitcoin to perform well, which will lead to greater gains for altcoins. When BTC rises strongly, most altcoins tend to thrive. This rise will also be accompanied by an increase in the cryptocurrency fear and greed index.
Additionally, Dogecoin needs whales to continue accumulating, just like in the past few months. Santiment data shows that whales have increased their holdings of Dogecoin in the past month, indicating that they expect the price to continue rising.
Dogecoin's price also needs more statements about Dogecoin from Elon Musk. Historically, Musk has been the number one proponent of Dogecoin, which is a cryptocurrency in his portfolio. Additionally, some analysts believe that Dogecoin may be driven by a Dogecoin ETF as early as 2025.
