The price of the leading meme cryptocurrency shows a positive performance after the previous breakthrough from a bullish rally that occurred on March 23.
Initially, the move proved volatile, but DOGE maintained a steady consolidation, indicating a price rebound, especially when the on-chain data showed whales about to take action by increasing their accumulation rate.
Can Another Price Recovery Emerge?
The price action for Dogecoin that began between September and March 23, 2022, created three lower highs alongside lower lows as it dived downward by 85% from its all-time high value of $0.744. At this point, when the swing points are connected, a falling wedge pattern is formed.
Meanwhile, the current price set-up is widely accepted because it provides how analysts forecast a 34% price upswing, calculated by measuring the distance between the various lows and adding the space to the breakout zone set at $0.178.
The price of Dogecoin broke the falling wedge upper trend support at $0.130 on March 24., which has seen the meme token stuck in consolidation since then. The sideways movement also appears to experience a bullish move as DOGE rallies above the 50-day and 100-day moving averages (MA) at $0.132 and $0.139, respectively.
The turn of events at the crucial price barrier will further support the next uptrend. Investors at this stage are advised to keep a close watch on the meme token because its price is likely to explode once again.
Alternatively, a breakout will propel Dogecoin up by 28% at the first price target of $0.178, aligning with the 200-day MA. Therefore, the barrier to be created here is likely to form when the price of Dogecoin has moved to a local top. This is where further price uptrends are expected to converge.
However, should buyers come together and overcome the current hurdle, the momentum would spark another further uptrend to reach the $0.216 price ceiling. Additionally, the overall activity would lead to a 51% price gain for the popular meme cryptocurrency.
The DOGE distribution chart has been significant support for the audacious bullish outlook for the meme coin as its on-chain metrics track the changes in the various wallets holding the canine cryptocurrency.
Further analysis over the past few weeks has shown that wallets that hold 10 million or more tokens have upgraded their accumulation pattern, which saw a steep increase from 77.93% to 81.87%. From available data, the spike is reported to have taken place from February 8 to April 20.
Many experts believe that the sudden changes in DOGE accumulation are a testament to institutional investors’ activities, whose interests manifest themselves when the bullish trend gains significant support in the Dogecoin market.
Alternatively, the value of Dogecoin has been relatively stable for some time, even as the market experienced some setbacks over the past couple of days.
Further price consolidation would be sufficient to see the coin gain considerable value after the bulls have been triggered into action.