The Dogecoin price is showing signs that a huge move is on the way. Well, on-chain stats also point to a similar result. On closer inspection, this move could most likely be in favor of the bulls.
Dogecoin’s time to shine
The price of Dogecoin is down about 83% from its all-time high and is currently hovering around $0.11. From September 29, 2021 to date, DOGE has lined up three distinctive lower tops and lower bottoms. Connecting these points using trendlines reveals the formation of a falling wedge pattern.
This technical formation predicts a rise of 34%, determined by adding the distance between the first swing high and swing low to the breakout point. Assuming the breakout happens around $0.133, the target would be $0.178.
However, investors should pay close attention to the recent breakdown of the $0.124 max pain point. A recovery above this barrier would instill confidence in sideline buyers and this development could serve as a catalyst to kick-start a bull rally.
The one-hour active address index supports this bullish theory. The number of active addresses increased from 4,831 to 101,300 in less than 12 hours. This sudden increase in the number of investors interacting with the Dogecoin blockchain indicates that these investors are interested in DOGE at the current price levels.
Therefore, the bullish proposition is getting wind of the recent wave of interested market participants looking to buy DOGE.
In addition, the whale transaction count, which tracks the number of transfers worth $100,000 or more, has also skyrocketed from 28 to 685.
This statistic serves as an indication of the investment interests of high net worth investors and whales. Therefore, the 2.346% increase indicates that whales also want to invest in DOGE. Market participants should also note that during uptrends, a large spike in whale trades coincides with local tops and is used to identify trend changes.
All in all, the price of Dogecoin seems poised for a step higher. But it needs to recover above the USD 0.124 resistance barrier. Failure to do so, however, could cause a massive correction pushing DOGE towards $0.085.
If the bears refuse to back down, the dog-themed cryptocurrency could retest the $0.063 support level, suggesting a 46% crash from its current position.