Dogecoin (DOGE) price is raising expectations as the cryptocurrency prepares to break out of a bullish descending wedge pattern.
Support from the market and investors is also noticeable, albeit minimal, and will contribute to the recovery of DOGE.
Dogecoin Expands Its Borders
Dogecoin price is currently on the verge of moving from a major resistance to a support, which would confirm a breakout. One of the main catalysts for this rally could be Elon Musk’s recent tweet. The DOGEfather said that he is ready to serve “the Department of Government Efficiency, i.e. DOGE
This is expected to drive the price of DOGE higher. The moving average convergence divergence (MACD) further supports this potential bullish momentum.
The indicator shows an increase in overall bullish momentum. This suggests that market sentiment is starting to shift to the upside, pointing to potential for a recovery in Dogecoin price.
Read more: Dogecoin (DOGE) vs Shiba Inu (SHIB): What’s the Difference?
However, despite this positive technical signal, other factors could slow the pace of this recovery. One key issue is the behavior of large investors, commonly referred to as whales.
Currently, whales are seeing only minimal growth in their holdings. Over the past two weeks, wallets holding between $100,000 and $10 million in DOGE have seen an influx of just $300 million. This lack of significant accumulation from these big players indicates a cautious approach, reflecting uncertainty or fluctuations in the market.
The whales’ reluctance to add to their positions may ultimately slow down the recovery process. Without the active participation of these large investors, the bullish momentum indicated by the MACD may not fully translate into a sustained upward movement in Dogecoin’s price.
DOGE Price Forecast: Next Bull Run?
Dogecoin price is approaching a breakout of a bullish descending wedge that is trading at $0.1059. The model suggests a 90% rally ahead of the meme coin, which puts a target at $0.20.
The above factors suggest that this rally may take some time as a breakout is yet to be confirmed. This will happen once $0.1168 moves into support, allowing a rally to $0.1286.
Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030
However, there is a possibility that this breakout may not happen, as it did in mid-July. This could lead to Dogecoin price falling to $0.10 or lower, which would invalidate the bullish thesis and also destroy the pattern.
