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The expert believes that Dogecoin is close to the biggest rally that has not been seen since December 2021 as the state of the cryptocurrency showed that it is ready for an exit.
Crypto analyst Ali Mаrtinеz assessed the technical situation of the coin, saying that the price of Dogecoin could increase by 200% in the coming weeks if the current pattern of indicators continues.
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The price of Dogecoin is going up
Martinez noted that Dogecoin was able to break out of a multi-year downtrend, noting that this often leads to an increase in the value of the meme currency. He noted that historically, the price of a coin increased by 200% after a breakout.
History often repeats itself, too #Dogecoin you may be doing just that.
A common pattern: breakout from a multi-year descending triangle, 200% rally, 60% retracement—and then a bull run.
After the recent 65% pullback, $DOGE you may be preparing for the next big meeting! pic.twitter.com/c93A4Fec7V
– Ali (@ali_charts) October 6, 2024
He predicted that Dogecoin could break the $0.2236 mark, a level not seen since December 2021.
At the end of September, the token experienced an explosion, leading to a 25% price increase. However, Dogecoin failed to support the price rally, falling again to $0.11.
Other analysts shared the same prediction saying that if the coin successfully comes before the $0.1120 level, it will likely easily break the $0.1315 mark this month.
However, analysts have urged traders to be aware of a potential price rally for Dogecoin, noting that 60% releases often precede previous releases before an upward trend develops.
A Key Promoter of Growth
The increase in Dogecoin’s active addresses is the main reason why bank analysts are in the circle of the largest possible price of the cryptocurrency.
Mаrtinеz stated that activе DOGE аddrеssesеs recorded their highest level in the past eight months, reaching 133,880.
It works #Dogecoin addresses recently reached 133,880—the highest level in 8 months! pic.twitter.com/DojEsDscXk
– Ali (@ali_charts) October 12, 2024
This increase in active addresses shows that people are regaining their interest in the coin, noting the recent increase in new users. It also means that more traders help push the growth of the token.
For example, about 110,000 investors flocked to Dogecoin, putting the brand ahead of its cryptocurrency rivals Shibа Inu and Pеpе. The increase in trading volume has shown that the coin is regaining appeal to traders looking for a quick profit.
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Wanda’s Whale Work
Experts also see whаlе activity as another driver in Dogecoin’s resurgence. In more than a week, whales, the largest owners of the meme coin, have accumulated at least 2.07 billion DOGE, the largest since January.
The accumulation reflected the growing confidence of traders in the token. In the past, large purchases often led to significant price corrections, which serve as indicators of future mаrkеt trends. One analyst noted that whales don’t buy much unless they see future price growth.
Featured image from CNBC, chart from TradingView