Trading at $0.37, Dogecoin has shown no significant 24-hour price movement but has recorded a 15% surge over the past week. The recent whale activity has also propelled its 24-hour trading volume to $10.2 billion, marking a 50% increase.
Chart Patterns Hint at Bullish Potential
Technical analysis has further fueled optimism around Dogecoin’s trajectory. According to crypto analyst Ali Martinez, DOGE is trading within a multi-year ascending parallel channel, which points to a bullish price target of $15. Additionally, the weekly chart shows DOGE breaking out of a bullish pennant formation, a signal that often precedes upward momentum.
Moreover, on January 17, the token attempted to breach the upper band of its Bollinger Bands but was met with resistance, leading to a retest of the middle support band. DOGE now appears poised for another breakout attempt, which could trigger a major rally.
Source: TradingView
Also, the Relative Strength Index (RSI) reads 53.60 which means that the buyers have gained an upper hand and bulls will try to push DOGE higher. The gradient of the line suggests a swift move to reclaim the $0.4 price level and aim higher.
Historical data adds to the excitement. Analysts on X have noted that following U.S. presidential inaugurations in 2017 and 2021, DOGE experienced exponential growth, surging 30x and 80x, respectively. If the token mirrors even the average of these past cycles, it could climb 55x from its current price, potentially reaching $20.
“WSB Trader” on X stated last week that Dogecoin could push above $1 by the end of January considering the fact that the month is substantially bullish for the memecoin historically.
Memecoin Market in Uptrend
Dogecoin’s performance is part of a broader rally in the memecoin market, which has a combined market capitalization of $116 billion. Trading volumes in the memecoin sector have soared, with a 124% uptick over the past 24 hours, now standing at $81 billion.
This surge coincides with Trump’s inauguration, as analysts speculate on the potential for crypto-friendly policies under his administration. While Trump’s TRUMP memecoin has grabbed headlines, DOGE continues to solidify its position as the undisputed leader in the memecoin ecosystem.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.