After weeks of price declines, Dogecoin, the well-known meme coin, appears to be ready for a strong recovery. Analysts expect that Dogecoin is resting on a critical support level which could be at the bottom of a technical structure known as a “Falling Wedge,” suggesting that a significant price movement is coming soon.
What is a Falling Wedge?
A Falling Wedge is a bullish reversal that indicates an asset’s price is moving downwards while the range of movement is narrowing. Dogecoin forms this wedge structure for the second time now so it might prove to be beneficial for the investors sentiment to witness a wedge breakout.
Key Price Levels to Watch
As many traders anticipated, Dogecoin encountered fresh buying towards halting the decline at the crucial base support near $0.16896, a price level where buyers were willing to purchase. Presently, the buyers are aiming to take the price above the resistance level of the wedge.
If the resistance level is strongly breached, a crypto analyst suggests that Dogecoin pricetargets can be set to a number of significant price levels:
- $0.23: The initial level is where some traders may be enticed to sell for profit.
- $0.287: This price marks a previously supporting level that now poses a challenge for Dogecoin to surpass.
- $0.340: Dogecoin attaining this value may serve as a significant breakout indicator.
- $0.445: This is a price target to which a bullish trend needs to sustain if it is to be achieved in the long term.
After hitting the price of $0.445, some experts expect a slight pullback before gaining significant upward momentum beyond $0.56.
Whales are Buying More Dogecoin
Despite recent drops in the price of Dogecoin, large investors (or “whales”) have increased their buying activity in the market. Recently, a whale purchased 40 million DOGE tokens worth approximately $30 million in just 24 hours. Such bullish behavior indicates confidence from major investors regarding Dogecoin prospects which signals anticipation of a price increase.
What’s Next for Dogecoin?
Currently valued at around $0.19, Dogecoin price remains under the crucial price point of $0.20. Reduced selling pressure coupled with augmented buying from whales indicates possible escalation for Dogecoin. If Bitcoin and the general crypto market experience a rally, Dogecoin may be on the brink of achieving all-time highs.
The current market sentiments suggest analysts are waiting for the memecoin to breach the vertical wedge structured accumulation zone before estimating future price projections. Primarily, it has the potential to cause explosive growth with the right amount of price volatility.
Also read: Bitcoin at Risk? Short-Term Weakness and S&P 500 Drop Spark Crash Fears
