Dogecoin fractal gives a hint of the whale stock 85% DOGE price rally
Dogecoin It is showing a characteristic price pattern ahead of the 8,000% rally in 2021, fueling speculation of another major crash in the coming weeks.
DOGE Consolidation Trend Mirrors 2021
Dogecoin's (DOGE) price is up 480% from its August low, including a 220% rally following Donald Trump's presidential election victory in November. However, the cryptocurrency has now entered a period of consolidation.
DOGE/USD weekly price chart. Source: TradingView
Specifically, DOGE is trading within a tight $0.39-$0.48 range marked by the red circles on the chart above following a recent parabolic rebound. The level of consolidation reflects that of early 2021 when Dogecoin faces a sideways trend following an upward move before another major divergence.
Related: Dogecoin Copies Porsche Market As DOGE ETP, Musk Drives Rally
An additional similarity between the 2021 and current Dogecoin price trends is the weekly Relative Strength Index (RSI).
Since December, the weekly RSI has entered overbought territory above 70, a technical signal for a price correction or long-term consolidation. In the year In 2021, the same overbought conditions did not lead to a sharp decline, but to a brutal continuation.
If history repeats itself, DOGE may initially target $0.75 in January 2025, as indicated by Fibonacci retracement estimates, which would indicate an 85% price rally.
Source: X
Whale stocks rise amid Elon Musk's influence
Onchain data further supports crash visualization.
Messari shows that addresses holding 1 million DOGE or more now hold 130.2 billion DOGE, an all-time high. The increasing number of whale addresses indicates growing confidence among large investors in Dogecoin's upward trajectory.
DOGE supply addresses with more than 1 million tokens. Source: Masari
The 2021 rally saw a similar increase in the supply of DOGE held by whale addresses, with the number rising from 110.3 billion to 112.5 billion.
DOGE supply with over 1 million tokens. Source: Masari
Elon Musk's influence continues to play a key role in driving Dogecoin's performance and growing interest among whales. During the 2020-2021 rally, Musk's frequent tweets in favor of memecoin contributed to fueling the dramatic price increase.
A comparable catalyst recently emerged is the Department of Government Efficiency (DOGE), ironically tied to the Dogecoin token DOGE. This development has sparked new speculative interest in the world's largest memecoin.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
