The price movement of Dogecoin in the last 24 hours was approxcharacterized by consolidation about $0.33. Notably, this hike around the $0.33 level has seen Dogecoin hold above a key trendline that could determine or interrupt its trajectory from here.
Interestingly, Dogecoin is also showing what looks like the formation of a climax bottom, according to a recent technical analysis of price action. This observation comes from crypto analyst Trader Tardigrade, who provided insights into Dogecoin’s price structure and a positive outlook for the king of meme coins.
Dogecoin remains strong above the support trend line
In one current analysis On social media platform X, trader Tardigrade noted that Dogecoin has maintained its position above a key support trendline. This support trend line, as the price chart below shows, is around $0.315 and that’s it a relevant area for Dogecoin since mid-December 2024. This support level emerged after Dogecoin briefly fell below $0.27 on December 20 before rebounding higher. As trader Tardigade pointed out, the structure resulting from this break formed a selling peak.
However, the selling peak may not mean the end of the correction. Instead, Dogecoin may still be in the process of reaching a “sell climax bottom,” which is a longer formation that sets the stage for a price correction bottom. Currently, Dogecoin is retesting the support trendline at $0.315 after recently rising to $0.39.
This retest is seen as a crucial step in the broader pricing structure. According to trader Tardigrade, the price action represents a “secondary test” (ST), a technical move designed to confirm the validity of the selling climax bottom. By staying above this level, Dogecoin increases its chances of transitioning from the correction into a longer recovery higher.
DOGE is showing signs of strength
Investors are watching closely for signs of strength in Dogecoin, and on-chain data suggests there are some investors They may already be positioning themselves move up for the final boss. Trader Tardigrade shares this opinion, noting that Dogecoin will ultimately show a sign of strength as it rises.
This increase is based on the Expectation of a strong upswing from the sales peak below. Regarding a Price targetTrader Tardigrade predicted that the next move for Dogecoin will be a rise towards $0.66 in the next few weeks.
Speaking of investors positioning for Dogecoin to move higher, on-chain data from Santiment shows that Dogecoin whale addresses have purchased over 470 million DOGE tokens in the last 48 hours. As a result, the total holdings of these whale addresses, which hold between 10 and 100 million DOGE tokens, now stands at 22.56 billion tokens, which is the highest level in over 30 days.
At the time of writing, Dogecoin is trading at $0.332 and is up 0.5% in the last 24 hours.
Featured image from WSJ, chart from TradingView