How high can Dogecoin price go by December 31st?

Dogecoin price has entered a consolidation phase near its year-to-date high of $0.4795.

Dogecoin (DOGE), the largest meme coin by market cap, was trading at the psychological level of $0.4500 on December 5th. It is up 450% from its lowest point this year, increasing its market cap to over $65 billion.

Analysts are optimistic that the ongoing consolidation could be the calm before the storm before the token rises to $1. In an X post, World of Charts noted that the coin could soon see a strong upward breakout in the next few days.

A likely catalyst for DOGE price will be Bitcoin (BTC)’s ongoing rally after it broke above key resistance at $100,000. If it rises above this level, there are chances that many institutional investors and companies will start buying the coin. Higher BTC prices often lead to more interest in cheap meme coins.

Dogecoin price could also skyrocket due to the ongoing greed in the crypto industry. Data shows that the crypto fear and greed index has jumped into the extreme greed zone of 85. The Altcoin Season Index has also continued to rise, which will increase demand for the coin.

Dogecoin price will also benefit from ongoing whale acquisitions. Recent data shows that some whales continue to hold onto their holdings of the coin. Data from ClankApp shows that whales moved over $3 million worth of coins on December 5th.

The Dogecoin price chart suggests further gains

The weekly chart shows that DOGE has already broken above the key resistance level at $0.2265, its highest level on March 25th. It has moved above the 50-week and 200-week moving averages. Dogecoin is also approaching the 38.2% Fibonacci retracement level.

However, the coin is forming a small rising wedge chart pattern, a potentially dangerous pattern. Therefore, there is a risk that it will decline and possibly retest the support at $0.40 and then resume the uptrend.

Further gains will be confirmed if bulls rise above the year-to-date high of $0.4795. In this case, the coin could rise to an all-time high of $0.7363 by December 31st. Such a move would mark a 65% increase from current levels. In this bull run, investors would then eye a move towards the coveted $1 level.

A move below the key support at $0.35 will invalidate the bullish view and bring with it the risk of a plunge to $0.2265, the highest level in April this year.