Dogecoin Price Poised for 295% Surge as Whales Accumulate

Dogecoin, the largest meme coin in the cryptocurrency market, has been trading within a narrow range, currently 53% below its peak in November. However, technical analysis suggests a potential significant surge in its price. The coin is forming a cup and handle pattern, which, if broken, could propel its price to $0.8630 and beyond.

As of Sunday, Dogecoin was trading at $0.2200, marking a 68% increase from its lowest point in November. The weekly chart indicates that Dogecoin reached its peak price of $0.7390 in 2021, driven by endorsements from high-profile figures such as Elon Musk. Following this peak, the coin experienced a sharp decline, bottoming out at $0.048 in June 2022. Since then, it has been slowly forming a cup-and-handle pattern, with the upper side of the cup at $0.4522, which was the highest point in November last year and May 2021.

A cup-and-handle pattern consists of two parts: the cup section, characterized by a rounded bottom and horizontal support, and the handle section, which involves a pullback or consolidation. In Dogecoin's case, the handle part has been a pullback from a high of $0.4522 in November to $0.1295. A bullish breakout is anticipated when the DOGE price rises above the upper side of the cup at $0.4522. The profit target for this pattern is determined by measuring the depth of the cup and projecting that same distance upward from the cup’s upper rim. Given the cup's depth of 92%, the target price is $0.8630, representing a 295% increase from the current level.

Several potential catalysts could drive Dogecoin's price rebound. One significant indicator is the accumulation of the coin by whales. Those holding between 100 million and 1 billion coins now possess 26.5 billion coins, up from 22.8 billion in January. Similarly, those holding between 10 million and 100 million coins have increased their positions to 23.8 billion. This accumulation suggests that large investors are bullish on Dogecoin's future prospects.

Another potential catalyst is the approval of four DOGE ETFs by the Securities and Exchange Commission. Companies such as Bitwise, Grayscale, 21Shares, and Rex Shares have all applied for these funds, which could provide a significant boost to Dogecoin's price if approved. Additionally, if Bitcoin continues its strong bull run, as predicted by many experts, Dogecoin's price could also see a substantial increase, given its historical correlation with Bitcoin's performance.