Could Dogecoin rally 60% next week?

In the daily period, the price of Dogecoin coils up, indicating a sudden move. A 50% to 60% increase is anticipated if DOGE imitates Ripple. The bullish prediction will be invalidated if the meme currency is unable to maintain above the $0.0705 support level. The crypto asset is trading at 0.0760 at the time of writing.

Since November 22, the price of Dogecoin has been moving within a narrow range. The latest rise above the range low, though, appears encouraging and portends a powerful advance for the coming week.

In November 2022, the price of Dogecoin created a range that covered $0.0705 to $0.0952. DOGE has been trading in the aforementioned range for around five months, but the most recent deviation below the range low, followed by a swift rebound, raises the possibility that a bullish move is just around the corner.

Early in March, the price of Dogecoin underwent a significant sell-off that caused it to fall below the $0.0705 mark, but it quickly rose back above it, demonstrating a robust defense from purchasers.

There are crucial levels that investors need to pay particular attention to now that technical experts are displaying obvious indications of an impending bullish move. Before a bullish move gets going, there can be a sweep of the range low at $0.0705 for sell-side liquidity. As the price reaches $0.0828, the range’s midpoint, the uptrend will be under intense selling pressure.

Once this obstacle is removed, DOGE will have a clear route to the range high of $0.0952. Investors would see returns of around 35% as a result of this action.

With the complex consolidation that has been in place since November 2022, an increase to $0.0952 does not signal the end of the positive scenario. Market investors might anticipate the Dogecoin price to hit $0.114, which represents the midpoint of the 55% drop that occurred from November 1 and November 9, 2022. For investors, this move would represent a 62% rally. Holders of DOGE would profit 77% if the price rose further to the 62% retracement level at $0.125.

The most significant danger to DOGE’s positive outlook may come from an intriguing group of underwater investors, according to the most recent transaction data. A staggering 32.16 billion DOGE were bought by 306.6k addresses at prices ranging from $0.0771 to $0.0906, for an average of $0.0839.

The bulls may run into resistance from investors trying to sell their shares at a profit if the price of Dogecoin rises to their average buy level since these investors are now out of the money. The good news is that if DOGE passes the $0.0839 resistance level, it will have clear skies up to $0.0952.

Given the present price levels, the rise in active addresses shows that investors are interested in DOGE and points to a potential accumulation. The Supply Distribution chart also demonstrates that addresses holding between 100 million and 1 billion DOGE tokens have been growing quickly. The percentage of these addresses increased from 17.50% to 20.95% between the end of December 2022 and the middle of March 2023.

Such a significant increase among high net worth investors suggests that the price of Dogecoin may be about to make a positive surge.

While all technical and on-chain indicators point to an optimistic view for the Dogecoin price, investors should have a fallback strategy in place in case the bulls are unable to seize the initiative. The bullish theory would be destroyed if the price fell below the range low at $0.0705 and then turned this crucial support level into a resistance level. In such a scenario, DOGE might drop 15% and hit the $0.0597 support level.