Dogecoin (DOGE) could rise more than 330%, reaching above $1 after breaking out from a falling wedge pattern on the 2-week chart, according to analyst Trader Tardigrade.DOGE was trading at about $0.23 on Aug. 15.
The analyst pointed to past cases where DOGE broke out from similar wedge shapes on the chart. In 2021, a breakout like this was followed by a sharp price rise over the next few months.
Data from Santiment shows that wallets holding very large amounts of DOGE bought 2 billion coins in the last seven days. These large holders, known as whales, often move the market because they control a lot of supply.
When whales buy, they usually move the coins from exchanges to private wallets. This reduces the number of coins available for trading, which can make it easier for the price to rise if buying continues.
More Holders Keeping Dogecoin for the Long Term
IntoTheBlock data shows that wallets holding DOGE for more than one year are now at the highest level ever recorded. Holders who keep coins this long are less likely to sell during small price moves.
Wallets holding DOGE for one month to one year have also grown in number. This means more people are choosing to hold onto their DOGE instead of selling quickly after small gains.
DOGE is currently above its 20-, 50-, 100-, and 200-day exponential moving averages (EMAs). These are price averages that traders watch to see where buying and selling might happen. Right now, these averages are all between $0.21 and $0.224, and they have been acting as support in recent weeks.
The relative strength index (RSI), which measures how fast and far the price has moved, is at 54. This is in the middle range, meaning Dogecoin is neither overbought nor oversold. The stochastic oscillator, another measure of price momentum, is also in the middle range.
DOGE faces resistance at $0.25. If it breaks above this level, the next area to watch is $0.35. These are important points on the chart that traders use to judge whether the price could move much higher.
Futures Trading Activity is Rising
Data from CoinGlass shows that the number of open DOGE futures contracts is now at its highest level in months. This means more traders are making bets on the future price of DOGE.
Funding rates, which are payments between traders in the futures market, are slightly positive. This means more traders are betting on prices going up, but not at a level that usually leads to quick reversals.
DOGE’s 30-day price correlation with Bitcoin (BTC) is 0.67. This means that when Bitcoin moves up or down, DOGE often moves in the same direction.
In past rallies, DOGE performed better when Bitcoin prices were stable or rising. If Bitcoin’s price falls sharply, it could make it harder for DOGE to keep climbing.
The increase in long-term holders, whale buying, and steady futures market activity all match the conditions the analyst described. But for DOGE to get anywhere close to $1, it would first need to break above $0.25 and then $0.35.
If Bitcoin stays strong and more people start using and trading DOGE, the chances of a bigger move would improve. But if whale buying slows, Bitcoin falls, or fewer people trade DOGE, the price could struggle to rise.