Recent days have seen a surge of activity in the crypto market, with Dogecoin enthusiasts riding a particularly turbulent wave. The market was sent into a bearish region as *BTC* plunged, retesting the $50,000 mark and triggering a bearish fervor that impacted several altcoins, Notably, meme coins like Dogecoin, saw its momentum halted. Despite this setback, market experts are forecasting a promising comeback for DOGE price, citing signs of an imminent recovery in their price movements following positive on-chain trends.
DOGE Shows 2020’s Pattern
In the past 24 hours, the crypto market has seen a significant shakeout, with over $132 million in positions being wiped out. This sell-off was sparked by a downturn in crypto prices, which faced rejection at key resistance levels, leading to a massive $90 million in long positions being liquidated.
Dogecoin (DOGE), the most prominent memecoin, saw substantial selling pressure as investors offloaded over $500,000 in long positions. Despite its bearish performance in the recent altcoin rally, *DOGE* is currently showing a chart pattern eerily reminiscent of the one preceding its explosive 2021 bull run. If the patterns hold true, Dogecoin could be setting its sights on an ambitious price target of $10 in the upcoming bull market.Â
Prominent cryptocurrency expert Ali Martinez has pointed out remarkable parallels in Dogecoin’s price trends, comparing its recent activity to the patterns observed in 2020, hinting at the possibility of history repeating itself.
Martinez highlighted the similarity in Dogecoin’s price trends, noting its breakout from a descending triangle pattern, a subsequent period of consolidation, and an explosive increase of 28,770% in 2020. Currently, Dogecoin seems to be following a similar trajectory, having broken free from a descending triangle and now in a phase of consolidation.
Martinez suggests this could be the precursor to another significant bull run. However, it’s important to mention the anticipation surrounding Dogecoin’s price reaching the $1 milestone. In the previous surge, Dogecoin peaked at 66 cents before undergoing a correction of nearly 90%.
Interestingly, on-chain metrics reveal that a group of smart whale investors is capitalizing on the recent market downturn rather than joining the prevalent trend of asset liquidation. A Santiment chart showcases the evolving landscape of whale wallet balances, specifically those holding at least 10 million DOGE (valued at approximately $800,000), shedding light on their strategic investment moves in real-time. Presently, the collective balance of Dogecoin whales exceeds 15 billion DOGE tokens, indicating a significant aggregation of wealth within these large-scale holders.
What’s Next For DOGE Price?
Efforts by bearish traders to pull Dogecoin back into the confines of the symmetrical triangle pattern have not been countered effectively by bullish traders. Consequently, the DOGE price is breaching lower than the immediate Fibonacci support levels, weakening the chances for a bullish reversal. As of this writing, the DOGE is trading at $0.083, marking a decline of more than 1.6% since yesterday.
The 20-day Exponential Moving Average (EMA) is currently set at $0.084 and is on a downward trajectory, while the Relative Strength Index (RSI) has fallen below the neutral 50 mark to 41, indicating a bearish predominance in the market.
Should this downward trend continue below the moving averages, it could signal an increase in bearish sentiment and intensify selling pressure, even during brief market recoveries. A breach below the crucial support level at $0.08 could trigger a new round of sell-offs.
On the flip side, if bullish traders manage to overturn the current downward momentum and push the price above the EMA levels, there could be an opening for DOGE to climb towards the next resistance area around $0.09.
