Could Dogecoin See a 25% Rally by October’s End? Analysts Share Key Insights
The cryptocurrency market showed a strong bullish trend over Sunday’s low-volatility trading, highlighted by a 1% increase in Bitcoin, which sparked renewed momentum for leading altcoins like Dogecoin. As October nears its end, Dogecoin’s recent performance has garnered attention, particularly following a key resistance level breakout that some analysts believe could set the stage for a high-momentum rally.
Currently trading at $0.14, Dogecoin saw an intraday gain of 2.49%, with its market cap reaching $20.2 billion. This recent boost has crypto enthusiasts wondering: could Dogecoin surge by 25% before the end of the month?
Analyzing the Recent Price Pullback for a Potential Bull-Flag Pattern Breakout
Following a correction earlier this week, Bitcoin retreated from its $70,000 resistance level, which led to a broader market pullback. Dogecoin was no exception, dipping from $0.149 to $0.127, marking a 14.6% decline. However, in a recent analysis, renowned crypto analyst Ali Martinez shared that this pullback might actually be forming a bullish flag pattern—a trend characterized by a sharp rise (or “Pole”) followed by a brief, downward consolidation phase within two declining trendlines (the “Flag”).
This temporary correction could give buyers a chance to recharge for a fresh rally. With DOGE now trading at $0.14, the analyst points to a potential breakout if it surpasses the $0.143 resistance. If successful, this move could signal a 25% price jump to around $0.175.
Major Holders Show Confidence, Accumulating 17.6 Million DOGE
Santiment data indicates that large Dogecoin holders (with wallet sizes between 10 million and 100 million DOGE) have recently added 17.64 million DOGE to their portfolios. This level of accumulation by significant players could reflect increased confidence in Dogecoin’s potential, potentially providing a solid base of support for upcoming price actions.
DOGE Price Outlook: Will the Rally Continue?
Since mid-October, Dogecoin has seen a strong rally from $0.10 to a peak of $0.149, marking a robust 48% gain. This upswing also broke a significant resistance at $0.12, potentially concluding a four-month accumulation phase for the token. Should this trend hold, buyers could drive DOGE toward a 36% rally, with a possible test of the $0.00002 mark in sight.
Additionally, a recent bullish crossover of the 50-day and 200-day Exponential Moving Averages (EMA) might further strengthen buying interest in DOGE, potentially sustaining an upward momentum. On the downside, however, if DOGE fails to sustain its breakout above the triangle pattern, sellers may take control, leading to extended consolidation.
The coming days will be crucial in determining whether Dogecoin can sustain its momentum and reach the anticipated 25% increase before October’s close.
News
