KEY POINTS
- Dogecoin falls as crypto market crashes
- Analyst believe DOGE price would soon see a bullish breakout
- Dogecoin is trading down 5.30 percent at $0.1147
Dogecoin may currently be at some of its lowest prices, but analysts predict the dog-themed altcoin is preparing for a bullish breakout as DOGE is still the most used smart contract among deep-pocketed ETH whales.
Analysts identified several market catalysts pointing out that Dogecoin is heading to a bullish price breakout in the coming weeks. Since the start of May, Dogecoin has been showing a falling wedge pattern on its timeframes, suggesting a possible bullish price reversal soon.
This kind of pattern surfaces when the price trends down within a range planked by a couple of descending but converging trendlines. The falling wedge aligns with the decreasing trade volumes, underlining that trading activity dragged because of the narrowing price range.
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The rise of trading volumes alongside a break of the wedge to the upside hints at the possibility of the asset breaking out. In trading, a falling wedge breakout is anticipated to propel the price to skyrocket by as much as the maximum distance between the upper and lower trendline.
In the case of Dogecoin, the trading theory's application indicates a potential surge toward $0.40 if the breakout happens near the $0.14 level. Another market catalyst that could push the price of the dog-themed altcoin is Musk's Twitter acquisition, which investors hope would pave the way for the inclusion of the altcoin as a payment option on the social media platform.
Analysts noted that Dogecoin's price rally gets its cues most of the time from speculations. Meanwhile, Amazon's Jeff Bezos recently followed DOGE co-creator Billy Markus on Twitter, which hyped investors since the move could be an indication that Bezos and Dogecoin are onto something.
Moreover, Ethereum whales' movement appears like they have settled down and despite the ongoing price instability, almost 58 million DOGEs with a value of around $7.2 million at the prevailing rate, were moved from several addresses to an unknown wallet in one transaction Monday. Before that, a 150 million DOGE transaction was also moved to an unknown wallet last Saturday.
On-chain whale activity tracker WhaleStats reported that Dogecoin still remains one of the most used smart contracts among the top 500 BSC whales.
Dogecoin was trading down 5.30 percent at $0.1147 at $1,967,884,519 as of 2:25 a.m. ET on Tuesday based on the data from CoinMarketCap.
