Dogecoin (DOGE) price has seen a retracement in the last 24 hours after failing to breach the resistance at the intra-day high of $0.4602. However, during the dip, Dogecoin whales have transferred over $100 million worth of DOGE, signaling significant market interest in the asset. Simultaneously, analysts anticipate that DOGE could potentially experience a 400% price surge in light of the heightened market interest amid a highly bullish Q4 market.

Whale Transactions Indicate Increased Market Activity

Recent reports reveal that two large transactions have taken place involving Dogecoin, involving over 249 million DOGE worth around $102 million. The first transaction saw 131 million DOGE transferred from an unknown wallet to Coinbase, while the second involved 117 million DOGE moved from Binance to an undisclosed wallet.

These large transfers could suggest that whales are positioning themselves for a possible price move, while also indicating heightened market interest.

The increased activity by major holders often signals potential price shifts. As DOGE trades above $0.40, many market participants are closely watching these large transfers, which may precede a breakout or retracement in price. In particular, the recent surge in derivatives trading volume by 77% suggests a rise in demand for Dogecoin, potentially setting the stage for the next big move.

Analyst Predicts 400% Dogecoin Price Surge

Market analyst Javon Marks has speculated that Dogecoin’s price could rise by 400% based on historical trends and Fibonacci extension levels. According to Marks, the meme coin is in its third bull cycle, following similar patterns from previous cycles in 2017 and 2021. The analyst believes that DOGE price could target the 1.618 Fibonacci extension, which currently sits at $2.28, up from its current price of around $0.42.

In his analysis, Marks points out that during the previous bull cycles, Dogecoin surged from its market bottom to the 1.618 Fibonacci extension level. In 2017, DOGE rose from $0.00009 to a peak of $0.8750, while in 2021, the asset moved from $0.00168 to its current all-time high of $0.73995.

Marks anticipates that a similar trend could unfold this time, with DOGE rising from its current cycle bottom at $0.06004 to $2.28. This represents a potential upside of 457% from the current price.

DOGE Bullish Pennant Formation Signal Breakout

Technical indicators are also signaling a bullish outlook for Dogecoin. The chart pattern currently forming suggests a Bullish Pennant, a continuation formation that typically precedes an upward breakout. After a strong price increase, DOGE has entered a consolidation phase, where it is currently trading near the $0.42 level. This consolidation may indicate a cooling-off period before the price makes another significant move.

The breakout from this pattern could propel Dogecoin to higher levels. If the price clears key resistance at $0.45 and $0.50, it could test the projected target level of $0.65. This would align with the bullish structure observed in previous cycles, where DOGE experienced substantial upward movements following similar consolidations.

As Dogecoin continues to consolidate, traders and analysts are keeping an eye on key support and resistance levels. The immediate support for DOGE lies at $0.40, where the price has recently stabilized. If this level holds, DOGE may be able to push through the next resistance at $0.45.

A breakout above this level could pave the way for further gains, potentially bringing DOGE closer to the $0.50 mark amid Dogecoin ETF anticipation. On the other hand, if the price fails to hold above $0.40, there could be a pullback to lower support levels at $0.35.

✓ Share:

Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.