The largest memecoin, Dogecoin (DOGE), continues to show a positive price movement with a more than 10% increase last week. At the time of writing, DOGE is trading at $0.06873 with a market value of $9.73 billion, making it the 9th largest cryptocurrency by market value and the 8th largest altcoin. So, what’s next for this popular altcoin? Let’s take a closer look.
Critical Breakout in Dogecoin
The recent weekly candle formation indicates that Dogecoin has broken the long-standing downtrend resistance trend line that has been suppressing its price. Experienced cryptocurrency analyst Ali Martinez stated that after the breakout of this important descending triangle formation on the weekly time frame, the altcoin has shown positive indicators. The bullish outlook for DOGE is further supported by the confirmation of a buy signal from the TD Sequential indicator in the same time frame.
Furthermore, the price chart of Dogecoin indicates a potential 20% recovery from current levels. The optimism and recovery in the cryptocurrency market amid the sideways movement of Dogecoin led to the formation of a double bottom pattern, pushing DOGE to its current price of $0.69.
Although the ongoing recovery appears strong, the altcoin retraced slightly after reaching the $0.075 resistance level. Currently, the first support level for DOGE is above $0.067, and if the price remains above this level, there is a potential for buyers to continue the recovery by 20% and reach the neckline of the formation at $0.085.
Whale Movements Surrounding DOGE
Whale Alert, a reputable cryptocurrency data platform specializing in large transactions, detected that a wallet address holding 5.39 million DOGE worth $372,461 and dormant for a long time has become active again. This wallet address has been inactive for approximately 9.8 years since Billy Markus and Jackson Palmer launched DOGE as a fun side project in 2013.
Whale Alert reported that 392,000 DOGE were transferred from this reactivated wallet address to a newly created wallet address about three hours ago, and the whale distributed the large amount of DOGE among various wallet addresses.
