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Dogecoin‘s price is preparing to break out from a descending wedge pattern, raising expectations. Support from the market and investors can be seen, but this process may remain minimal and could help DOGE’s price recovery. Dogecoin’s price is currently on the verge of turning a critical resistance into support, which could confirm a breakout.
What’s Happening with DOGE?
One of the biggest factors in this rise could be Elon Musk‘s recent tweet. Elon Musk announced in his post that he wants to serve DOGE. This is expected to lead to an increase in DOGE’s price. The Moving Average Convergence Divergence (MACD) further supports this potential bullish momentum. The indicator shows an increase in overall bullish momentum. This process indicates that market sentiment is starting to shift upwards and there is potential for a recovery in Dogecoin’s price.
However, despite this positive technical signal, other factors may slow down this recovery. A significant concern is the behavior of large-scale investors, commonly known as whales. Currently, whales report only a minimal increase in the assets they hold. In the last two weeks, wallets holding between $100,000 and $10 million in DOGE saw only $300 million in inflows. The lack of significant accumulation by these major players reflects a cautious approach, indicating uncertainty or hesitation in the market.
The reluctance of whales to increase their positions could ultimately slow down the recovery process. Without strong participation from these large investors, the bullish momentum indicated by the MACD may not fully translate into a sustainable upward movement in Dogecoin’s price.
DOGE Chart Analysis
Dogecoin‘s price is approaching a breakout from a bullish descending wedge pattern, trading at $0.1059. The formation suggests a 90% increase ahead for the memecoin, with a target of $0.20. The aforementioned factors indicate that this rally may take some time as the breakout has not yet been confirmed.
This will happen by turning $0.1168 into support to enable a rise to $0.1286. Still, there is a possibility that this breakout could fail, as it did in mid-July. This could lead to Dogecoin’s price dropping to $0.10 or lower, invalidating the bullish thesis and causing the pattern to fail.
