Dogecoin (DOGE) is up 350% this year and is in line with the broader crypto market’s bullish outlook. Adding credence to this outlook is Elon Musk’s Department of Government Efficiency (D.O.G.E.) and whales accumulating DOGE. This bullish momentum coupled with Bitcoin’s recent performance could serve as tailwind and propel Dogecoin price by 85%.
Dogecoin Price Could Shoot 85% If DOGE Flip This Key Resistance
The weekly chart shows that the Dogecoin price made a strong bullish breakout in November. This was a notable breakout since it came after it spent over two years in a consolidation between $0.050 and $0.2280.
Dogecoin has now cruised above the crucial resistance level at $0.2278, its highest swing on March 25. Moving above that level was crucial because it invalidated the double-top pattern that was forming.
It has also jumped above the 50-week and 25-week moving averages, a sign that bulls are in control. The coin also jumped to a high of $0.4840, which was slightly above the 38.2% Fibonacci Retracement level.
There are signs that the Dogecoin price is slowly forming a bullish flag chart pattern. This is a popular continuation sign that is characterized by a long vertical line and some consolidation.
Therefore, a break above that resistance level will raise the possibility of the price of DOGE rising to $0.7383, its all-time high. This price is about 82% above the current level. Such a move would raise the possibility if the coin soaring to the key psychological level at $1.
On the flip side, a drop below $0.2813, the 61.8% Fibonacci Retracement level, will invalidate the bullish thesis. It will mean that the bullish flag pattern failed to work out, and risk the coin retesting the support at $0.2278.
DOGE Price Needs Other Catalysts
Additionally, Dogecoin price needs other catalysts to continue its strong bullish rally. In the first place, it needs Bitcoin to do well, which will lead to more gains among altcoins. Most altcoins thrive when BTC is in a strong rally. Such a rally will also be accompanied by a rise in the crypto fear and greed index.
Further, Dogecoin needs whales to continue accumulating the coin as they have been doing in the past few months. Data by Santiment shows that whales have boosted their DOGE ownership in the last month, a sign that they expect the price to continue rising.
Dogecoin price also needs more statements about Elon Musk’s DOGE. Historically, Musk has been a top mover for Dogecoin, a crypto that exists in his portfolio. Also, some analysts believe that it could be boosted by the DOGE ETF as soon as in 2025.
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