Dogecoin ($DOGE), a meme-inspired cryptocurrency, may be on the verge of surging due to a little-known technical indicator suggesting a breakout. According to Trader Tardigrade on X, the Gaussian Channel indicator on Dogecoin’s weekly chart has turned green, indicating a potential surge in the future. Tardigrade pointed out similar chart patterns in 2016-2018 and 2021-2022 where DOGE reached new all-time highs.
Large DOGE investors, known as whales, have been divesting their holdings in the cryptocurrency, with their supply dropping from 45.3% to 31.3% over the past year. Data from IntoTheBlock shows that whales have been selling their DOGE holdings, while retail and mid-sized investors now hold a larger share of the supply. Crowd sentiment for DOGE, Shiba Inu, and XRP has been plunging according to Santiment, potentially creating a buy opportunity for patient traders.
Dogecoin is currently trading at $0.124 after a 90% increase in the past year but a 27% decrease over the last 30 days amid a broader cryptocurrency market downturn. Technical analysis of Dogecoin’s yearly price chart shows bearish short-term sentiment but a potential long-term bullish trend as its price is below the 50-SMA and above the 200-SMA. The RSI is in oversold territory at 32.5 and trending downward, while the MACD line has crossed below the signal line, indicating a bearish signal.
The price chart suggests immediate resistance at the 50-SMA level of $0.146 and support near the recent low at the 200-SMA of $0.114. With Dogecoin potentially poised for a surge, investors may be watching closely for any indications of a breakout in the coming weeks. As whales divest their holdings and sentiment shifts, the future of DOGE remains uncertain, but the technical indicators suggest a possible uptrend in the near future.
In conclusion, Dogecoin’s price could be on the brink of a significant surge, according to technical indicators and historical patterns. As large investors divest their holdings and sentiment for the cryptocurrency plunges, patient traders may see this as a potential buying opportunity. With Dogecoin’s price currently trading at $0.124, investors will be closely monitoring the resistance and support levels to gauge the potential for a breakout in the near future. Time will tell if DOGE will reach new all-time highs or experience further volatility in the coming months.