Dogecoin price could rise 400% if whales move $100 million in DOGE

Dogecoin (DOGE) price witnessed a decline over the last 24 hours after failing to break resistance at the intraday high $0.4602.

During the decline, Dogecoin whales transferred over $100 million worth of DOGE, signaling significant market interest in the asset. As the meme coin continues to show signs of recovery, analysts believe that DOGE could potentially see a 400% price increase in the upcoming bull cycle.

Whale transactions indicate increased market activity

Recent reports show that two large Dogecoin transactions have taken place, involving over 249 million DOGE worth around $102 million. The first transaction transferred 131 million DOGE from an unknown wallet to Coinbase, while the second transaction transferred 117 million DOGE from Binance to an unknown wallet.

These large transfers could indicate that whales are preparing for a possible price move, while also indicating increased market interest.

The increased activity of large holders often indicates possible price shifts. With DOGE trading above $0.40, many market participants are closely watching these large transfers that can precede a price breakout or decline. In particular, the recent 77% increase in trading volume suggests an increase in demand for Dogecoin and may be setting the stage for its next big move.

Analyst predicts a 400% price increase for Dogecoin

Market analyst Javon Marks has speculated that the price of Dogecoin could rise by 400% based on historical trends and Fibonacci extension levels. According to Marks, the meme coin is in its third bull cycle and is following similar patterns from previous cycles in 2017 and 2021. The analyst believes that DOGE price could target the 1.618 Fibonacci extension, which is currently at 2 .28 US dollars, which is about $0.42 above the current price.

In his analysis, Marks points out that Dogecoin rose from its market low to the 1.618 Fibonacci extension level during previous bull cycles. In 2017, DOGE rose from $0.00009 to a high of $0.8750, while in 2021 the asset rose from $0.00168 to its current all-time high of $0.73995.

Marks thinks a similar trend could unfold this time, with DOGE rising to $2.28 from its current cycle low of $0.06004. This represents a potential upside of 457% from the current price.

DOGE Bullish Pennant Formation Signal Breakout

Technical indicators also signal a bullish outlook for Dogecoin. The chart pattern currently forming suggests a bullish pennant, a continuation pattern that typically precedes an upside breakout. After a sharp price increase, DOGE has entered a consolidation phase and is currently trading near the $0.42 level. This consolidation could indicate a cooling period before the price makes another significant move.

Breaking out of this pattern could propel Dogecoin to higher levels. If the price clears the key resistance levels of $0.45 and $0.50, it could test the forecast target level of $0.65. This would be consistent with the bullish structure observed in previous cycles, where DOGE experienced significant upside after similar consolidations.

As Dogecoin continues to consolidate, traders and analysts are keeping an eye on key support and resistance levels. The immediate support for DOGE is at $0.40, where the price has recently stabilized. If this level is held, DOGE may be able to break the next resistance at $0.45.

A breakout above this level could pave the way for further gains and potentially take DOGE closer to $0.50 amid anticipation of a Dogecoin ETF. On the other hand, if the price fails to sustain above $0.40, there could be a decline to the lower support level of $0.35.

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Kelvin Munene Murithi

Kelvin is a respected author with expertise in crypto and finance and holds a bachelor’s degree in actuarial science. Known for his concise analysis and insightful content, he has a good command of English and excels at conducting in-depth research and providing timely cryptocurrency market updates.

Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.