Dogecoin is poised to burst out of a descending triangle on a multi-year chart. Whales began amassing DOGE in preparation for the subsequent price increase.
In recent weeks, the largest memecoin in the world, Dogecoin (DOGE), has been largely absent from the altcoin market rally. On the technical chart, Dogecoin is preparing for a significant breakout.
The price of Dogecoin (DOGE) has been forming a robust descending triangle on its multi-year chart. A prominent crypto analyst Ali Martinez explains that the last time DOGE started the descending triangle chart pattern, the cryptocurrency appreciated by 23,200%. Any sustained close above $0.08 would be highly suggestive of the same.
#Dogecoin | The last time a descending triangle developed on the monthly chart $DOGE pumped 23,200%! 👀
I'll be looking at a sustained monthly close above $0.80 for confirmation. pic.twitter.com/RVgymwIhtK
— Ali (@ali_charts) July 23, 2023Of course, past results don’t guarantee future performance. However, this technical breakout would be favorable for Dogecoin (DOGE) investors.
Increasing Dogecoin (DOGE) Whale Activity
Recently, many crypto investors have been focusing on Dogecoin (DOGE). According to data from the crypto analytics platform IntoTheBlock (ITB), the total quantity of DOGE held by large investors, also known as “whales,” has increased significantly over the past week.
Before 16 July, there were only 770 significant transactions involving DOGE, whereas there are now 1,300. These transactions involve more than one hundred thousand dollars’ value of DOGE.
As of press time, Dogecoin (DOGE) trades at $0.071 and faces a tiny resistance at $0.072. Around this price, 8,180 Dogecoin addresses purchased 382.79 million DOGE.
The following significant resistance range for Dogecoin is between $0.072 and $0.085, where 40.22 billion DOGE were bought by 599,390 addresses. These levels could act as barriers to prevent further price increases.
Among its fellow memecoins, DOGE stands out as a positive example. Being the first and largest meme coin, Dogecoin has shown better growth than others.
Another major catalyst for DOGE could be Tesla retaining DOGE payment, despite ousting Bitcoin. Moreover, with Elon Musk’s and other advocates’ support, Dogecoin’s potential has been gaining more attention and recognition in various areas.
