An expert believes that Dogecoin is on the verge of a huge price rally not seen since December 2021, as the cryptocurrency landscape shows it is ready for a breakout.
Crypto analyst Ali Martinez weighed in on the coin’s technical landscape, stating Dogecoin’s price could rise by 200% in the coming weeks if the current pattern of indicators continues.
Dogecoin’s Price On The Rise:
Martinez observed that Dogecoin has broken out of a multi-year downward trend, which historically has led to a significant upsurge in price. He noted that the coin’s price rose by 200% after similar breakouts in the past.
In late September, Dogecoin experienced a breakout that resulted in a 25% price surge. However, the coin was unable to sustain this rally, falling back to $0.11. Other analysts agreed with Martinez, suggesting that if Dogecoin surpasses the $0.1120 level, it could easily breach the $0.1315 mark this month.
Market Cap and Analyst Warnings: As of now, Dogecoin's market cap stands at $16.8 billion. While optimism is growing, analysts have warned that a 60% retracement often follows a breakout before the coin gains momentum for a long-term upward trend.
A Key Driver Of Growth:
One key factor behind this potential rally is the surge in Dogecoin’s active addresses, which recently hit the highest level in eight months, reaching 133,880 active addresses. This indicates a renewed interest in the coin, as many new users are entering the market.
Around 110,000 new investors have flocked to Dogecoin, pushing it ahead of competitors like Shiba Inu and Pepe in terms of growth and trading volume.
Whale Activity:
Another driving force behind Dogecoin’s resurgence is whale activity. Large holders of the coin have accumulated over 2.07 billion DOGE in the past week, the highest accumulation since January. This indicates growing confidence among big investors, as whales typically buy large amounts in anticipation of future price growth.
Conclusion: With a surge in active addresses and whale accumulation, Dogecoin could be on the brink of a significant price rally. However, analysts urge caution, noting the potential for a retracement before any substantial upward movement.
