Dogecoin price has been struggling in a bear market, dropping by nearly 70% from its peak last year. On-chain data shows that whales are capitulating and selling off their tokens, contributing to the downward trend. Despite this, one crypto analyst, Olivier Maximus, believes that the DOGE price could bounce back if it manages to flip a key resistance level.
The ongoing selling spree by DOGE whales is evident from third-party data, with billions of tokens being offloaded since April 4. Additionally, the network realized profit/loss has been in negative territory since February, indicating that holders are moving their tokens at a loss. This trend suggests a sense of capitulation among investors.
Analysts are divided on the future trajectory of Dogecoin price, with some predicting a bullish breakout. Olivier Maximus anticipates a potential 130% surge to $0.35 if the coin establishes a new higher low. Similarly, Steph is Crypto, another prominent analyst, foresees a surge to $1 within the next 2 to 3 months based on the coin’s weekly chart patterns of higher highs and higher lows.
Technically, the daily chart for Dogecoin price indicates a possibility of a bullish reversal despite the ongoing sell-off. The formation of an inverse head and shoulders pattern and a double-bottom pattern suggest a potential upward movement. To confirm this bullish scenario, DOGE must break above the descending trendline and the 50-day moving average, both of which have acted as strong resistance levels.
If Dogecoin price manages to break above the neckline of the double-bottom pattern at $0.2047, it could signal a bullish breakout. Conversely, a drop below the double-bottom point at $0.1425 would invalidate the forecast and potentially lead to a decline towards the psychological support level at $0.10.
In conclusion, while DOGE price remains under pressure due to whale selling and overall market conditions, there are indications of a potential recovery based on technical analysis and bullish predictions from some analysts. Investors should closely monitor key levels and patterns to assess the likelihood of a bullish breakout in the near term.
