NewsletterDogecoin Price 6% Away from Reversing 5-Month Correction, $0.15 Breakout Ahead?
Highlights
- The Dogecoin price is 6% away from a major breakout from the falling wedge pattern.
- The recent legal victory for Elon Musk may reignite DOGE’s use for Tesla payments, supporting the coin’s recovery.
- A bearish reversal from the overhead trendline will delay the breakout opportunity.
DOGE, the largest meme cryptocurrency by market cap, shows a slight upswing to $0.102 on Saturday, defying the current market uncertainty. The bullish momentum can be attributed to the recent win for Elon Musk and Tesla in the DOGE manipulation lawsuit. With sustained buying, the Dogecoin price is set to challenge the resistance trendline long-coming wedge pattern, signaling a pivotal moment for its holders.
Dogecoin Price Rebounds Amid Whale Accumulation and Onchain Recovery
The dog-themed meme coin shows a 5-month correction trend under the influence of a falling wedge pattern. Resonating within the two converging trendlines, the coin price plunged from $0.228 to $0.1, registering a loss of 56%.
However, the pattern formation often concludes with a major breakout from the overhead trendline, signaling the end-of-correction trend. By press time, the Dogecoin price had traded at $0.1016 while boasting a market cap of $14.8 billion.
The coin price recently reclaimed the $0.10 psychological level after Elon Musk secured a victory in the ongoing class-action lawsuit accusing him of manipulating Dogecoin prices. This conclusion will likely reopen Dogecoin payment for Tesla merchandise and may also bolster DOGE payments for its vehicles.
If the bullish momentum persists, the coin price could rise 6% to challenge the resistance trendline of the wedge pattern. A potential breakout will accelerate the buying pressure and surge the asset past $0.143, followed by $0.174.
According to the Intotheblock analytics, the total address with a DOGE balance is set to surpass the 6.6 Million mark. This uptrend highlights Dogecoin’s growing interest and adoption as more users hold the cryptocurrency in their wallets.
Moreover, the supply distribution metric from Santiment highlights a continuous accumulation trend from whale wallets holding 10 million to 100 Million DOGE since August 2023. The large holders’ buying activity often boosts market confidence, indicating the potential for a price rebound.
On the contrary, if the Dogecoin price prediction hints at a reversal from the overhead trendline, the current correction could prolong for the coming weeks or months. The bearish alignment between the daily exponential moving averages (20, 50, 100, and 200) hints that the path to least resistance is down.
Frequently Asked Questions (FAQs)
1. What is driving the recent upswing in Dogecoin's price?
2. How close is Dogecoin to a major breakout from its current trend?
3. What impact could Elon Musk's legal victory have on Dogecoin's use?
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