Savvy investors seem to be betting on a market pattern that appears optimistic but is actually fraught with hidden dangers—Dogecoin's price prediction may soon fulfill its optimistic expectations.
Whales are aggressively buying Dogecoin (DOGE), accumulating 138 million tokens overnight, which proves that the bullish prediction for Dogecoin's price is correct.
Over the past week, the price of this meme coin has plummeted, and choosing to buy the dip now may indicate that savvy investors are betting on a price bottom.
Analysis from the well-known anonymous trader Tartigrade may reveal their deceptive bullish strategies they are betting on.
The flash crash in October caused prices to retest the Fibonacci levels of 0.109 - 0.272, and with the breakout of the long-term support at the Fibonacci level of 0.15, this level will now be tested again.
This pattern is almost identical to that seen before the 2024 bull market, but this time on a larger scale. If history repeats itself, Dogecoin may not have yet experienced the strongest rally of this cycle.
Glassnode's data supports the view that the bull market may still have room to rise, as the proportion of circulating Dogecoin supply that is in profit is currently declining.
The seven-day moving average shows that the number of profit holders is less than the peak value of the previous cycle. This pattern typically appears during consolidation or adjustment phases.
Dogecoin Price Analysis: Breakthrough
The pattern pointed out by tartegrade may reactivate the descending triangle pattern that has been brewing for a year, thereby eliminating the possibility of breaking the support level below $0.15.
The momentum indicator supports this outlook. The RSI indicator continues to form bullish divergence during the downtrend, indicating that selling pressure is weakening, which is uncommon in a declining market.
The MACD death cross falling below the signal line is not expected to last long, as sellers seem to be losing control over the current trend.
The key breakout threshold is near the historical support level of $0.18, while $0.22 serves as a temporary resistance level for sustained breakouts.
A clean triangle breakout indicates a potential price increase of about 310%, returning to historical highs around $0.50, with a final target price of $1, representing a potential increase of 710%.
Although this move may depend on favorable market conditions, the Federal Reserve may shift to quantitative easing (QE) policies in 2026 to stimulate risk appetite.
