Dogecoin price has been consolidating between $0.39–$0.48 with patterns resembling its behavior before the 8,000% rally in 2021.
Dogecoin’s price has stabilized around $0.40 following a strong rally. The current market pattern closely resembles DOGE’s behavior prior to its massive 8,000% surge in 2021, fueling predictions of another potential mega rally.
After hitting the lows earlier this year in August, the Dogecoin price has bounced back 480%, of which 220% gains came following the Donald Trump victory last month. Despite this, DOGE $0.23 24h volatility: 2.1% Market cap: $34.87 B Vol. 24h: $3.34 B has been consolidating in a very narrow range of $0.39–$0.48, with a setup similar to that before the 2021 mega rally.
DOGEUSDT
As said, the current consolidation phase for Dogecoin price mirrors that of early 2021, wherein the meme coin experienced a massive breakout following the sideways trend for a while. Additionally, the weekly relative strength index (RSI) for DOGE has entered overbought territory above 70, a typical signal of a potential price correction or consolidation.
However, in 2021, similar overbought conditions led to continued bullish momentum rather than a downturn. If historical trends repeat, DOGE could target $0.75 by January 2025, based on Fibonacci retracement projections, signaling a potential 85% price surge.
Dogecoin Whale Accumulation on the Rise
On-chain data also supports the Dogecoin price rally ahead with strong whale accumulation. According to Messari, addresses holding 1 million DOGE or more now control 130.17 billion DOGE, an all-time high. This increase in whale addresses suggests rising confidence among large investors in Dogecoin’s potential for further growth.
Courtesy: Messari
A similar surge in the DOGE supply held by whales occurred during the 2021 rally, when the amount held by these addresses rose from 110.31 billion to 112.46 billion.
Additionally, Elon Musk’s continued influence remains a significant factor in driving Dogecoin price performance. Musk’s frequent tweets supporting the memecoin during the 2020-2021 rally were pivotal in fueling its massive price surge.
DOGE Community Members Reject Network Attack Claims
Andreas Kohl, co-founder of Sequentia Network, recently claimed responsibility for disrupting a large portion of the Dogecoin network. In a post on X, the Bitcoin sidechain developer asserted that he exploited a vulnerability called “DogeReaper,” which allowed him to remotely crash 69% of Dogecoin nodes.
Prominent Dogecoin community member “Mishaboar” pointed out that the “DogeReaper” vulnerability exploited by Andreas Kohl had already been disclosed and patched in a node update released two weeks prior.
Mishaboar also questioned the reliability of the data Kohl used to support his claims. Kohl relied on Blockchair data, which indicated a drop in online Dogecoin nodes from 647 to 205 after the alleged attack. However, Mishaboar noted that Blockchair’s data is not comprehensive.
Additionally, Mishaboar emphasized that the Dogecoin network can function smoothly even with a smaller number of live nodes. Bitcoin developer Peter Todd echoed this sentiment, stating that the network’s decentralized design makes it resilient against such disruptions.
The notable thing here is even taking down 69% of publicly accessible dogecoin nodes is probably not going to do anything interesting.
It takes a _lot_ to break the consensus in flood fill networks. https://t.co/bonDjPI7mj
— Peter Todd (@peterktodd) December 12, 2024