Emily Walker
In the last 24 hours, Dogecoin’s price has been mostly stable around $0.33. This steady movement indicates it is maintaining above a critical trendline that could significantly influence its future direction.
Recent technical analysis by crypto expert Trader Tardigrade suggests that Dogecoin might be forming a “climax bottom.” This insight points to a potentially optimistic forecast for this prominent meme cryptocurrency.
Dogecoin Remains Above Key Support Trendline
According to a recent post on the platform X, Trader Tardigrade highlighted Dogecoin’s resilience above a vital support trendline, situated around $0.315. This level has been crucial for Dogecoin since mid-December 2024. The trendline gained importance after the coin dropped below $0.27 on December 20 but managed to recover. Trader Tardigrade pointed out that this event created what is known as a selling climax.
However, this selling climax might not mark the end of the downward trend. Instead, it’s possible that Dogecoin is completing a “selling climax bottom,” indicating a more prolonged phase of price correction. Currently, Dogecoin is testing the support trendline following a recent rise to $0.39.
This testing phase is seen as a crucial part of its price trajectory. Trader Tardigrade describes this movement as a “secondary test” (ST), which confirms the reliability of the selling climax bottom. If Dogecoin maintains its position above this level, it will enhance the chances of a shift from correction to a significant price recovery.
Potential for DOGE to Gain Momentum
Investors are keeping a close watch for any indications of strength in Dogecoin. On-chain data reveals that some investors may be positioning themselves for an upward surge. Trader Tardigrade shares this view, anticipating a forthcoming sign of strength for Dogecoin.
This anticipated surge is grounded in the expectation of a robust rebound from the selling climax bottom. Price predictions by Trader Tardigrade indicate a potential target of $0.66 for Dogecoin in the upcoming weeks.
Recently, on-chain data from Santiment shows that Dogecoin whales have acquired over 470 million DOGE tokens in just 48 hours. The total holdings for whale accounts with between 10 and 100 million DOGE now amount to 22.56 billion tokens, marking the highest total in over a month.
Currently, Dogecoin is valued at $0.332, reflecting a 0.5% increase in the last day.
Image source: WSJ, chart from TradingView