Aaryamann Shrivastava
22 August 2024, 12:00 GMT+0000
Ryan Boltman

In Brief
Dogecoin’s (DOGE) price is on the verge of a potential breakout from a bullish descending wedge pattern. There’s some support from the market and investors, which is helping DOGE recover, even if it’s minimal.

Dogecoin Pushes Its Limit
Right now, Dogecoin is close to flipping a key resistance level into support. If this happens, it could confirm a breakout. A big reason for this rise might be a recent tweet from Elon Musk. He mentioned he’d be willing to serve in “the Department of Government Efficiency, i.e., D.O.G.E.” This is likely to boost DOGE's value.

The moving average convergence divergence (MACD) indicator also supports this potential bullish trend. It shows an increase in overall bullish momentum. This suggests that market sentiment is shifting upward, indicating a possible recovery in Dogecoin’s price.

However, there are some factors that could slow down this recovery. One major concern is the activity of large investors, often referred to as whales. Right now, these whales are only seeing a slight increase in their holdings. Over the past two weeks, wallets with between $100,000 and $10 million in DOGE have seen inflows of just $300 million. This lack of significant accumulation from these major players shows a cautious approach, reflecting some uncertainty in the market.

The reluctance of whales to increase their positions might ultimately slow down the recovery. Without strong participation from these big investors, the bullish momentum suggested by the MACD may not lead to a sustained rise in Dogecoin’s price.

DOGE Price Prediction: Bullish Push Next?
Dogecoin is nearing a breakout from the bullish descending wedge pattern, currently trading at $0.1059. This pattern suggests a potential rise of 90%, targeting a price of $0.20. But keep in mind, this rally might take some time. The breakout won’t be confirmed until $0.1168 flips to support, allowing for a rise to $0.1286.

That said, there’s still a chance this breakout could fail, just like it did back in mid-July. If that happens, Dogecoin’s price could drop to $0.10 or lower, which would invalidate the bullish outlook and disrupt the pattern.