Dogecoin prepares for lift-off: Historical patterns hint at a 12,000% rally

Dogecoin address activity surges 111%, signaling strong interest ahead of a potential massive rally.
Historical patterns suggest Dogecoin could see a 12,000% rally as whales ramp up transactions.

As a seasoned analyst with over two decades of experience observing the crypto market, I can confidently say that the recent surge in Dogecoin address activity and whale transactions is not to be overlooked. Historically, these trends have often preceded significant rallies for DOGE, and given the patterns we’ve seen play out in the past, it wouldn’t be surprising to see a potential 12,000% rally if things continue as they have in previous cycles.

Dogecoin (DOGE) often experiences significant price spikes followed by corrections. For instance, in the year 2017, DOGE experienced a growth of 212%, then dipped by 40%, and subsequently increased an astonishing 5,000%. Likewise, in 2021, it saw a rise of 476%, followed by a correction of 56%, before skyrocketing another 12,000%.

By the year 2024, Dogecoin mirrored a similar path, rising an impressive 440% from its starting point of $0.065 to reach $0.39547. However, it subsequently retreated by 46%.

Based on crypto analyst Ali’s analysis, this pattern could indicate a possibility for another strong upward movement if the current trend persists, following the pattern observed in past market cycles.

Current price action and critical levels

At the moment of reporting, Dogecoin was being exchanged for approximately $0.3167, marking a 1.43% decrease in the last day and a more substantial 21.23% drop over the past week. Its current market cap stands at a staggering $46.66 billion, while its daily trading volume reached $4.37 billion.

According to the chart analysis, Dogecoin (DOGE) seems to be moving within its prolonged logarithmic price range. Key support zones have been marked at approximately $0.065 and between $0.19-$0.20. On the other hand, potential resistance can be found around $0.39547 and a higher level of $0.73665, which was Dogecoin’s all-time high in 2021.

If Dogecoin continues following its past upward pattern, analysts expect the highest possible price point to be around $17.94.

On-chain activity shows increased interest

According to data from IntoTheBlock, there’s been an increase in network activity. As of November 11th, the number of active addresses stood at 136,850, with 58,990 fresh addresses added.

Over the past week, new addresses rose by 102.40%, active addresses by 111.32%, and zero-balance addresses increased by 155.33%.

This growth in address activity coincided with Dogecoin’s recent price move to $0.40. The increased participation suggests a resurgence in interest, possibly from both retail and institutional investors.

There’s been a rise in significant Dogecoin transactions lately. In fact, within the last week, these ‘whale’ transactions hit a high of 9,410, which coincides with the recent price jump.

This marks a sharp increase from the weekly low of 2,450 transactions observed on 8th November.

According to information from Coinglass, the trading volume has decreased by approximately 24.83%, now standing at around $7.42 billion. Concurrently, the number of open futures contracts has reduced by about 4.71% to roughly $1.95 billion.

The volume of options trades decreased by a substantial 58.52%, amounting to approximately $427.08 million. Meanwhile, the number of open options contracts stood at around $1.18 million.

As a crypto investor, I’m observing some intriguing patterns. The rise in address activity and the occurrence of sizeable transactions seem to indicate that Dogecoin could be gearing up for a substantial price surge, based on past trends.

2024-12-23 23:03

Current price action and critical levels

On-chain activity shows increased interest

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