Dogecoin (DOGE) has risen 350% this year, consistent with the overall bullish outlook of the cryptocurrency market. Elon Musk's government efficiency department (DOGE) and whales hoarding DOGE add credibility to this outlook. This bullish momentum, combined with Bitcoin's recent performance, could become a tailwind, pushing 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 striking breakout as it had 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, the highest volatility on March 25. Breaking through this level is crucial as it invalidates the double top pattern that is forming.
It also surged above the 50-week and 25-week moving averages, indicating that the bulls have taken control. The token also surged to a high of $0.4840, slightly above the 38.2% Fibonacci retracement level.
There are signs that the price of Dogecoin 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 rising to an all-time high of $0.7383. This price is about 82% higher than the current level. If the token spikes to the key psychological level of $1, this action will further increase its likelihood.
On the other hand, falling below $0.2813 (61.8% Fibonacci retracement level) would invalidate the bullish argument. This means the bullish flag pattern fails and poses a risk of the token re-testing the support level of $0.2278.
DOGE's price needs other catalysts.
In addition, the price of Dogecoin needs other catalysts to continue its strong upward trend. First, it needs Bitcoin to perform well, which will lead to more gains for altcoins. When BTC rises strongly, most altcoins tend to thrive. This increase will also be accompanied by a rise in the cryptocurrency fear and greed index.
In addition, 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.
The price of Dogecoin also needs more statements about Dogecoin from Elon Musk. Historically, Musk has been the number one promoter 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.
