Dogecoin is striving to reach the much-coveted $1 mark.
As this upward momentum builds, one cryptocurrency analyst has pointed out an intriguing technical pattern on Dogecoin’s price chart, known as a “rounded bottom.” This pattern may hint at an upcoming price rally for the digital currency.
Analyst’s Findings
The analyst, who goes by the name “CobraVanguard” on TradingView, has showcased the rounded bottom developing in Dogecoin’s trading patterns.
This indicator suggests that once the pattern is fully established, it could lead to a price surge that propels DOGE beyond $1.
CobraVanguard underlined the impact of Elon Musk, the billionaire CEO of SpaceX and Tesla, in Dogecoin’s journey.
His backing has been pivotal for Dogecoin, especially since it became the first meme coin to capture his support.
This endorsement is seen as a vital factor in the coin’s market potential.
The analyst even shared a price chart to bolster their optimistic analysis.
Upon examining the chart, we see a clear bullish rounded bottom pattern spanning a weekly timeframe.
This formation indicates a phase of recovery after Dogecoin’s remarkable ascent to its all-time high during the bull market of 2021.
Since that peak, Dogecoin’s value has experienced numerous fluctuations, including significant declines and subsequent recoveries.
Resistance Levels and Predictions
The analyst also highlighted a critical resistance point at $0.68.
This level could be a near-term target for Dogecoin, and if it can break through, CobraVanguard believes it could trigger a substantial rally, potentially pushing the price to between $1.2 and $1.5.
Elon Musk’s involvement continues to play a crucial role in fueling Dogecoin’s quest toward $1.
Based on the analyst’s predictions, investors should prepare for a possible surge in DOGE’s price.
At the time of writing, Dogecoin was valued at $0.44, with a slight decrease of 5.13% in the last 24 hours.
Whale Accumulation and Investor Sentiment
Given the positive outlook for Dogecoin, large investors, often referred to as “whales,” have been noticeably increasing their holdings, reflecting growing confidence in the coin’s future value.
Such an increase in whale activity typically signals expectations of a significant upswing in price soon.
Recent posts on the social media platform X revealed that the largest Dogecoin holder has included an additional 1.5 million DOGE tokens in their portfolio.
This strategic move aligns with analysts’ optimistic projections for the cryptocurrency in this rising market climate.
One notable forecast shared by a user known as the “Doge lord” on X highlighted a consistent upward trajectory for Dogecoin during this bullish phase, identifying three important price targets: $0.69, $1, and an ambitious peak of $4.2.
As these trends unfold, the excitement surrounding Dogecoin’s potential continues to grow, leaving many keenly watching its progress.
Source: Bitcoinist
