The price of Dogecoin is projected to increase by 105% to reach $0.35, supported by a diamond bottom pattern, rising probabilities of DOGE ETF approval, and a significant 526% increase in long-term holdings.
Dogecoin appears ready for a breakout following the formation of a rare diamond bottom pattern on the daily chart.
Technical analyst Trader Tardigrade indicates that this price structure suggests a bullish reversal, potentially driving the $DOGE price up by over 105% to $0.35.
This optimistic outlook persists despite a 1.5% decline in Dogecoin's price over the past day and a 3% decrease over the past week.
Nevertheless, in the last 30 days, bullish momentum has prevailed, with the DOGE price increasing by 15%.
Dogecoin Price Diamond Bottom Pattern Hints at Rally
Trader Tardigrade has recognized a diamond bottom pattern on the daily DOGE/USD chart.
This formation generally indicates a bullish reversal following a prolonged downtrend.
The chart indicates that the breakout level is approximately between $0.165 and $0.17. This analysis sets the price target for $DOGE in the range of $0.255 to $0.35.
Additionally, the chart features a dotted green arrow directed towards the $0.35 level, implying a more favorable outlook for a potential breakout extension.
Ali Charts, a cryptocurrency analyst, observed that the price of Dogecoin is currently testing the support level at $0.167.
He remarked, 'If this level is sustained, it could lead to a rebound towards $0.175 and possibly $0.183.' Both analysts concur that it is essential to maintain the $0.165–$0.167 range for bullish momentum to persist.
Furthermore, the Price Momentum Oscillator (PMO) indicates a bullish crossover, which could facilitate additional gains should buying volume increase. These indicators bolster the argument for a potential rally if the current support level is upheld.
DOGE ETF Approval May Accelerate Dogecoin Price
Speculation regarding the $DOGE ETF is increasing in the market as multiple asset managers, including Bitwise, 21Shares,
Grayscale, and REX Shares, have submitted applications for approval. They are currently awaiting clearance from the U.S. Securities and Exchange Commission (SEC) to introduce Dogecoin ETFs.
Polymarket indicates that the likelihood of DOGE ETF approval has increased by 25%, with analysts estimating a 63% chance of approval by the end of 2025.
Experts suggest that if Dogecoin captures 30% to 50% of Bitcoin ETF inflows, its price could rise to between $0.34 and $0.50, based on an anticipated influx of $12 to $20 billion into DOGE markets.
This projection also indicates that DOGE’s total market capitalization could potentially more than double under these circumstances.
Furthermore, ETF approval is expected to attract more institutional investors, thereby further increasing demand.
This anticipated capital influx aligns with the technical indication of the $0.35 level. Analysts believe that news of approval could serve as a catalyst for a price rally, propelling DOGE beyond the $0.255 resistance level.
Holding Behavior Shows Investor Confidence
Recent information from IntoTheBlock indicates a positive shift in investor sentiment towards Dogecoin.
The average duration for which DOGE coins are held has risen by more than 526% over the past 90 days. This pattern resembles the trend observed prior to Dogecoin's bull run in 2021.
Over the last week, the holding period has increased by four months. This transition from short-term speculation to long-term investment alleviates selling pressure and indicates that investors anticipate a forthcoming rise in the DOGE price.
Should this trend persist, it may establish a more stable foundation for future growth.
Long-term holders currently account for the majority of transaction volume, a phenomenon typically observed prior to significant price increases.
The decrease in market supply, coupled with rising demand, serves as an encouraging indicator.
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