Discover the reasoning behind an analyst's prediction that $DOGE coin's price may experience a short-squeeze, potentially reaching $1.1 later this year due to accumulation by large investors.
As Dogecoin's price stabilizes, the likelihood of a short-squeeze in the near future is increasing.
The analyst has recognized a distinctive chart pattern and raised his target to $1.1, representing a 510% increase from the current price.
Additionally, there are indications that significant holders have been gradually accumulating the cryptocurrency.
Crypto Analyst Sees the Dogecoin Price Soaring to $1.1
Currently, Dogecoin is trading at $0.18, a price point it has maintained for several weeks.
Although the coin is not exhibiting any short-term bullish trends, an analyst suggests that it is experiencing a long-term bullish phase that may eventually lead it to surpass the psychological barrier of $1, potentially reaching $1.1 in the future.
The analyst referenced the weekly chart, which features two trendlines; the lower line connects the lower highs observed since October 2023, while the upper line connects significant levels at $0.23 and $0.50.
Furthermore, he identified the initial wave from October 2022 to the peak in April 2024, which represented an approximate 290% increase.
The subsequent wave extended from the low in September to the high in December 2024.
Following a decline to the lower boundary of a large megaphone pattern, the analyst forecasts that the next upward movement will elevate the price to $1.1, with expectations for this DOGE price prediction to materialize in September of this year.
Whales are Accumulating DOGE
The optimistic outlook for $DOGE coin's price likely accounts for the continued accumulation by large investors over the past few months.
In a post on X dated May 1, Ali Martinez reported that these investors had acquired 100 million DOGE within the last week alone. At the present valuation, these coins amount to over $18 million.
A closer examination reveals that large investors have been increasing their holdings since March 7.
During this period, the quantity of coins owned by investors holding between 1 million and 10 million coins rose from 10.3 billion to the current 10.59 billion, representing an increase of 290 million coins.
Such purchases by large investors are interpreted as a positive indicator in cryptocurrency market analysis.
DOGE Price Forecast: Inverse Head and Shoulders Forms
The short-term forecast for $DOGE prices appears optimistic, as it has gradually developed an inverse head and shoulders pattern on the eight-hour chart.
The head is positioned at the April low of $0.1305, accompanied by a slanted shoulder.
Additionally, the coin has surpassed the 50-period moving average, which offers substantial support.
Consequently, the most probable prediction for Dogecoin is a rise, potentially reaching the next target of $0.2087, approximately 15% higher than the current price.
Surpassing this level would set the next objective at $0.2420, the peak recorded on March 2.
A decline beneath the right shoulder at $0.1513 will negate the optimistic perspective and indicate a potential decrease to $0.12.
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