- Dogecoin price tests key support, analysts eye $0.30 breakout.
- Whale activity fuels concerns, but ETF hype sustains Dogecoin’s potential.
- Dogecoin consolidation continues, experts predict short-term rally ahead.
Dogecoin (DOGE) has been maintaining a steady upward trend within a rising wedge pattern since April, though it has faced significant consolidation in recent months.
On September 23, the memecoin retraced by approximately 20%, falling to $0.24. Despite this pullback, DOGE’s support remains robust above the crucial $0.22 level, which many traders view as key to preventing further downside pressure.
Ali Martinez Flags Potential for Short-Term Rally
According to analyst Ali Martinez, the recent decline in DOGE’s price has pushed the asset into a favorable buy zone, where its price is testing the wedge’s support. Martinez highlighted the formation of an ascending triangle pattern, along with a TD Sequential buy signal on the 4-hour chart, suggesting the possibility of a short-term rally. If the current support holds, DOGE could potentially move towards $0.30 in the near future.
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Mixed Technical Indicators Suggest Mid-Term Consolidation
On the daily chart, technical indicators are showing mixed signals, leaving traders uncertain about DOGE’s near-term trajectory. The MACD has turned bearish, with the negative histogram expanding, which signals weakness in the market.
At the same time, the Relative Strength Index (RSI) is hovering near overbought levels, further supporting the case for consolidation. As a result, many analysts believe DOGE may experience a period of sideways movement, giving it time to absorb market supply before a potential breakout later this year.
Source: Tradingview
Whale Activity Adds Extra Pressure to Dogecoin
Recent on-chain data has raised some concerns among traders. A significant whale moved 800 million DOGE, worth nearly $190 million, to Binance from an unidentified wallet.
This, alongside the sale of 680 million DOGE by wallets holding between 100 million and 1 billion coins, has fueled speculation that selling pressure could increase. These moves highlight the potential risks DOGE faces as large holders adjust their positions.
ETF Approval Could Provide Long-Term Support for Dogecoin
Despite the recent price dip, DOGE remains buoyed by positive macro developments, particularly the growing interest in cryptocurrency exchange-traded funds (ETFs). Grayscale’s recent filing for the Grayscale Dogecoin Trust (GDOG) and the listing of the 21Shares DOGE ETF on the DTCC’s official site have sparked optimism.
Traders believe that approval of these ETFs could stimulate institutional demand for DOGE, providing a foundation for a longer-term rally. If this trend continues, DOGE’s outlook could significantly improve, especially if the broader market sentiment remains bullish.
Also Read: Whales Scoop 30 Million XRP in One Day – Something About to Happen?
