The weekly chart for Dogecoin shows a recurring pattern of small price increases followed by large surges. This pattern has drawn attention, as analysts indicate that the current situation could lead to a significant rise, potentially pushing Dogecoin towards the dollar mark. It is currently trading at $0.1741 and has recently seen an increase in trading volume and whale accumulation.
A rounded bottom pattern is forming on the weekly chart
According to an analysis by Trader Tardigrade on the X platform, Dogecoin has been forming a rounded bottom pattern since December 2024. This pattern is known as a bullish reversal signal that often precedes a strong upward movement. If DOGE breaks through the resistance level at $0.23, it could lead to a price increase of 84% towards $0.44.
Technical indicators also support this potential breakout. The Money Flow Index (MFI), which measures buying and selling pressure, has crossed above 50. This movement often indicates rising capital inflows and suggests increasing buying pressure. However, the Average Directional Index (ADX) is trending downward, which may limit short-term upward momentum and lead to sideways trading.
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Source: Master Ananda (TradingView)
Expert Ananda pointed out on the TradingView platform that Dogecoin is testing key Fibonacci retracement levels. The price of Dogecoin has fallen below the support level of 0.618 at $0.178 and is now heading towards the 0.786 level at $0.158. If the price continues to decline, the support level at $0.13 may play a critical role, as it has remained stable during previous corrections.
Whale accumulation and increasing volume support the bullish setup
According to Santiment data, whales holding between 10 million and 100 million Dogecoin tokens added 320 million tokens over the past week. These addresses now control an all-time high of 24.98 billion Dogecoin tokens. This accumulation indicates strong confidence from investors despite the broader corrections in the market.
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Source: MoreCryptoOnline(X)
Dogecoin is also trading near a critical resistance level at $0.213. According to More Crypto Online, this area coincides with the 100% Fibonacci extension, which is often a pivot point for determining the potential for continued upward movement. If Dogecoin surpasses this level with strong trading volume, it may indicate the beginning of a stronger bullish trend.
