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A Glassnode analyst just shared an ultra-bullish Dogecoin prediction: a 13x surge is possible during the potential altseason. The chart highlights $2.9 as the potential price market for the meme asset. Let's break it down.
DOGE is tracking a huge cup and handle pattern, a bullish formation. Historically, this pattern precedes consolidation before an ensuing breakout. The target to move to, as shown in the chart, is the $2.93 level.
At the moment, DOGE is trading around the $0.167 level, taking support from the 50-day exponential moving average in blue and the 200-day exponential moving average in orange, hence indicating a medium- to long-term uptrend. Some slight expansion in the Bollinger Bands signals increased volatility that could drive the price in larger moves.
Over the last 24 hours, 1.77K large transactions were registered, carrying circa $11.4 billion worth of DOGE. This increased activity among whales might indicate potential big investors positioning themselves strategically in view of a market change that could precede a great price swing.
While the analysis is bullish, a couple of factors are there that could turn that prediction on its head:
Market sentiment: General market sentiment across major cryptocurrencies is likely to play a huge part. General bearish sentiment on the market could hinder DOGE's ability to reach such high targets.
Resistance levels: Breaking through $1 represents a psychological barrier for DOGE. To rise above this resistance level, significant purchasing power and market momentum will be needed to break above the levels listed.
Fundamental factors: Dogecoin is not the most commonly used digital asset among institutions or various entities due to the lack of an ecosystem behind it. DOGE mostly acts as a meme and community coin and does not offer utility.