- Dogecoin’s price is down 1.6% and trading at $0.1071 at the time of writing, with sluggish performance.
- One analyst predicted a potential rally, citing a pattern similar to Dogecoin’s 2021 bull run.
Dogecoin [DOGE]the meme-inspired cryptocurrency, has seen market volatility over the past week, despite previous attempts to recover.
Although Dogecoin saw a 2.7% gain last week, marking a slight upward trend, its more recent performance has been disappointing.
The cryptocurrency has fallen in value over the past 24 hours, hitting a low of $0.1065 before recovering slightly to its trading price at the time of writing of $0.1071.
This marked a decline of 1.6% over the past day, adding to a sluggish trend that has left many investors questioning the assets’ ability to recover.
Historical pattern of DOGE
A notable development came from prominent crypto analyst Trader Tardigrade, who shared an optimistic view of Dogecoin via X (formerly Twitter).
The analyst pointed to a technical pattern known as the ‘Williams Alligator’, which suggested Dogecoin could be primed for a breakout.
Source: Trader Tardigrade on X
Trader Tardigrade noted that this pattern, which followed a breakout from a long-term downtrend, reflected a similar consolidation phase that occurred before 2021’s massive bull run.
This observation has sparked discussions about whether Dogecoin is approaching another major rally in the near future.
A running of the bulls on the horizon?
While the technical outlook points to potentially bullish momentum, a deeper analysis of Dogecoin’s fundamentals could provide a clearer picture of the asset’s trajectory.
One of the critical indicators to keep an eye on is the Relative Strength Index (RSI), which measures the speed and change of price movements.
According to facts from CryptoQuant, Dogecoin’s RSI stood at a neutral figure of 38 at the time of writing.
Source: CryptoQuant
This indicates that the asset is neither overbought nor oversold, suggesting there is still room for movement in either direction depending on market sentiment.
In addition to RSI, whale activity can provide valuable insight into market behavior.
Whale trades – transactions involving transfers of more than $100,000 – are often seen as a barometer of interest from institutional or high-net-worth investors.
Read Dogecoins [DOGE] Price forecast 2024–2025
Facts from IntoTheBlock showed a significant drop in Dogecoin whale transactions this month, with the number dropping from 1.56k to just 1.1k at the time of writing.
This decline could indicate reduced interest or confidence among major investors, which could dampen the likelihood of an immediate price increase.
Source: IntoTheBlock
Credit : ambcrypto.com
