Despite trading mostly sideways on Tuesday, Dogecoin (DOGE) showed resilience for much of the day, benefitting from a broader lift-off in the crypto market, driven by Bitcoin since Monday.
Notably, this display of strength is generating a wave of optimism among DOGE enthusiasts, with some analysts suggesting that the token may be poised for a dramatic rally. In a recent tweet, prominent crypto analyst Cryptophic emphasized that the token’s price holds the potential for a tenfold increase in value.
“DOGE 10x Potential or too good to be true?” the pundit stated. He further highlighted key reasons for this prediction, including DOGE’s breakout above its long-term accumulation channel, strong weekly buying pressure, and potential future endorsement from high-profile figures like Elon Musk, as well as the possibility of historical patterns rhyming.
“[DOGE] has been trading within this channel since February 2021, over 1,127 days, until it broke out with a massive candle in February 2024. Since then, it has been retesting the breakout….multiple indicators are suggesting a bullish move is on the horizon,” Cryptophic added.
Supporting this view, analyst Cryptonight890 noted that DOGE appears ready to rebound from a critical support level around $0.10, potentially rising to $1, a gain of approximately 662% from current levels.
Elsewhere, Trader Tandigrade also echoed this sentiment, citing historical trends. “Dogecoin has a Breakdown on monthly Trendline Support. In history, DOGE broke down the support in the same way, just before the Surge. DOGE is ready for the next BULL RALLY,” the pundit tweeted Tuesday.
That said, on the fundamental side, on-chain data from crypto analytics firm IntoTheBlock shows that 73% of Dogecoin holders are making a profit, while 2% are breaking even and 26% bought at higher prices. Notably, 67% of DOGE holders have held their positions for over a year, indicating a strong investor commitment to the token despite recent market volatility.
Recent whale activity also suggests a growing interest in DOGE. Large transfers between wallets have been observed, including a significant transaction reported by Whale Alert earlier on Tuesday, in which 103,860,000 DOGE (worth approximately $11.2 million) was moved from Bittrex to an unknown wallet, likely for long-term holding.
At press time, the leading meme crypto-asset was trading at $0.10, reflecting a 1.69% increase over the past 24 hours and an impressive 7% rise over the past week.
