- Crypto analyst Ali Martinez predicts Dogecoin could soar by 5,900% from its current value, mirroring 2018-2021 patterns.
- Despite the influx of new meme coins, Dogecoin remains a key altcoin, potentially on the verge of a major rally.
Crypto analyst Ali Martinez, sharing insights on social X, speculates that Dogecoin could see an increase of 5,900% from its current price, based on patterns observed between 2018 and 2021.
I feel my fellow degens have been distracted with the new shiny #memecoins, but #Dogecoin remains the most important #altcoin in this sector.
From a technical perspective, #DOGE seems to mirror the 2018-2021 pattern. If so, $DOGE could be at the very beginning of a massive… pic.twitter.com/WGREwsxPcb
— Ali (@ali_charts) March 31, 2024
Martinez points out that despite the buzz around newer meme coins, Dogecoin remains an important crypto in the altcoin market, potentially on the brink of a upswing.
Currently, Dogecoin trades at $0.18, marking a 2.5% decline over the past day. Meanwhile, Ethereum (ETH) is also under the spotlight, showing signs of a bullish trend amidst an increase in transactions by major investors.
Despite recent price drops, the uptick in substantial transactions hints at a positive trajectory for Ethereum’s value.
🐳 #Dogecoin is up another +10% today, and +29% this week. The top #memecoin by market cap (#8 market cap #crypto asset overall) is being powered by major dormant whales moving $DOGE back into circulation, and a lack of #FOMO that would normally form tops. https://t.co/KKxqe4SBCm pic.twitter.com/Mb8YF71iIq
— Santiment (@santimentfeed) March 31, 2024
Market analysis from Santiment reveals a decrease in Dogecoin holders who own between 10 million and 100 million DOGE tokens, indicating that some have sold their stakes to capitalize on recent price increases.
This trend of selling for profit has been noted among DOGE investors, with a analisys highlighting a sale where a Dogecoin whale sold 86 million DOGE tokens following a price surge in March.
Also read: Tesla Incorporates Dogecoin as Payment Method and Dogecoin Bulk Movement Alert to Robinhood
The holdings of these large-scale investors, or “whales,” play a major role in influencing Dogecoin’s market. Their decision to sell has introduced considerable selling pressure, contributing to the cryptocurrency’s price dip from a recent peak of $0.22. Santiment had previously pointed out on X the likelihood of such a sell-off occurring.
This pattern of profit-taking underscores the volatile nature of the cryptocurrency market, where large transactions can significantly impact prices. Dogecoin, a cryptocurrency that started as a joke, continues to experience fluctuations in value driven by various factors, including the actions of key investors.
Dogecoin, however, faces challenges, having declined by 5.27% and approaching a critical support level at $0.2164. This scenario, observed for the third time, suggests a possible break from this pattern. However, with selling pressure mounting and technical indicators like the MACD and RSI signaling a continuation of the downtrend, Dogecoin’s immediate future seems precarious.
Related: Dogecoin (DOGE) Eyes $1 Price Target by Mid-April, Analysts Predict 6x Surge
If the selling intensifies, Dogecoin might dip to $0.1557 or even $0.1263. Conversely, maintaining above the $0.2064 support could signal a shift, attracting buyers and potentially pushing the price towards higher resistance levels. As the market watches, the closure of the current 4-hour candle could be crucial in determining Dogecoin’s direction.
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