Chart analysis indicates that the price of Dogecoin (DOGE) may soon recover to the highs of the end of 2024, with 2025 possibly ushering in greater upward potential.
Since Dogecoin fell to a low of 0.26 dollars last week, it has rebounded to 0.33 dollars and formed a triangular consolidation pattern, which is expected to trigger a bullish breakout soon.
Therefore, in the coming days, the price of Dogecoin may temporarily rebound to near the recent high of 0.48 dollars.
However, it is important to note that the area between 0.37 and 0.38 dollars may constitute significant technical resistance, as this price range coincides with the 21-day and 50-day moving averages and aligns with several recent lows.
This positive market atmosphere could last until the end of the year, but why?
Most cryptocurrencies are currently gradually recovering from the market sell-off triggered by the Federal Reserve last week, primarily because the Fed's interest rate forecast is more hawkish than the market expected. However, despite most mainstream cryptocurrencies still being far below the levels before the Fed's hawkish meeting, indicating that there is still room for further recovery in the market.
Currently, multiple favorable factors support the cryptocurrency market, especially as we are about to welcome the 'new golden age' of the cryptocurrency market in the U.S. and globally. The incoming Trump administration may strongly promote the adoption of Bitcoin and other major cryptocurrencies, particularly as he intends to establish a strategic reserve of Bitcoin, which will undoubtedly further facilitate market development. Additionally, Musk's 'New Government Efficiency Department (DOGE)' is set to be established under Trump's leadership, which will undoubtedly inject new vitality into the Dogecoin and meme coin markets, expected to become a leader in the upcoming meme coin season.
DOGE whales are back in a buying frenzy!
In the past three days, whales have purchased 270 million DOGE, showing an increase in market activity and suggesting that Dogecoin may recover from recent price declines. The sharp rise in whale trading volume is closely related to the price fluctuations of Dogecoin, indicating that these large holders have significant influence in the market.
Historical data often indicates that such buying behavior from whales is usually a precursor to market uptrends, so DOGE may have a strong bullish signal.
This large-scale buying activity aligns with the price upward trend, and if this trend continues, the likelihood of DOGE prices continuing to rise will further increase.
Market dynamics dominated by whales, especially involving large transactions, often increase buying pressure, driving a broader rebound in the DOGE market.
The triple force pattern of DOGE prices
By analyzing the daily chart of Dogecoin, it can be seen that its key trading pattern aligns with the triple force (PO3) strategy. This pattern roughly includes three stages: accumulation, manipulation, and distribution, typically lasting for weeks.
The accumulation phase began in early November, during which prices remained relatively stable with minor fluctuations, indicating that investors are quietly accumulating DOGE without significantly pushing up the price.
After entering mid-December, the market has clearly entered a manipulation phase. During this phase, price fluctuations suddenly intensify, primarily aimed at eliminating weak investors, usually by artificially lowering prices to test the patience and determination of new investors.
The Dogecoin is expected to enter the final distribution phase. Based on historical trends, if this phase follows previous patterns, the price may see significant increases, potentially approaching or exceeding previous highs, with speculative targets possibly reaching 1 dollar.
With the recent market activities of Dogecoin, some market observers predict it will enter a bullish trend, and the heat of social media discussions and overall market trends may further drive the formation of this trend.
Possible future price increases for Dogecoin
Considering Trump's possible return to the White House, the Dogecoin market is likely to rebound to recent highs in early 2025. Bullish investors hope to see Dogecoin rebound to the historical highs of 2021 (above 0.70 dollars), and there is even hope for it to break through 1.00 dollar for the first time.
However, does this mean the rise of Dogecoin will peak? By analyzing the historical cycles of Dogecoin, it can be seen that the current rebound may exceed many investors' expectations, requiring more targets and perspectives. Since its inception in 2014, Dogecoin has experienced three major market cycles, which may provide valuable clues for the trend in 2025.
When we connect the previous bear market lows with the previous highs and analyze through Fibonacci extensions, it can be found that Dogecoin's rebounds often far exceed the 4.236 Fibonacci level. In the 2021 rebound, Dogecoin even surpassed this level by more than ten times.
From the low point of the 2022 bear market to the 4.236 Fibonacci extension level of the 2021 high point, this means that Dogecoin should at least break through the 3 dollar mark per token in this cycle.
But historical experience shows that Dogecoin's price often exceeds this level. Considering this situation, it is not unreasonable to expect the price of Dogecoin to reach 1 dollar in this round. Of course, this means a market capitalization of several trillion dollars, which may be a bit excessive.
