Dogecoin on Launchpad – Analyst Predicts Price Will Rise 500% From Here

Investors in Dogecoin received mixed signals this week after market analysts revealed forecasts about the future price action of the meme cryptocurrency. Some predict a dramatic bullish rally, while others anticipate a significant fall before any potential bullish movement. Analysts predict a price increase of 500% based on chart patterns. According to cryptocurrency commentator "Steph is Crypto", Dogecoin seems to be on the verge of a tremendous bullish surge exceeding 500%. This is an estimate based on the chart model observed before previous market cycles, where Dogecoin increased by 501% after experiencing a fall over the past few weeks. "The bottom signal is flashing," Steph tweeted on social media site X, implying that the same pattern is growing again after another 129-day downtrend. If this trend continues, Dogecoin will rally to $0.73583 in the next few weeks.

The fall before the reversal However, not everyone agrees with this optimistic view. Another prediction from SwallowAcademy on TradingView is that Dogecoin may fall sharply before it can rise. Their research on the price action of Dogecoin compared to Tether (USDT) shows a potential decrease of 40% to the support level of $0.09.

SwallowAcademy's analysis found that after rising to nearly $0.23 at the beginning of this year, Dogecoin fell to $0.09 before rising above $0.45. Analysts predict a similar trend will occur, with the next significant fall being a fourfold increase, potentially retesting the $0.45 level. At the time this report was made, Dogecoin was trading above $0.15.

The number of short-term traders has surged. Data from market intelligence firm IntoTheBlock shows a significant change in the behavior of Dogecoin holders. Long-term cryptocurrency holders for over a year decreased by 2.67% last month. Medium-term holders from one to 12 months have decreased by nearly 12%.

Meanwhile, short-term traders with holding periods of less than one month have increased by more than 100%. This strong move towards short-term speculation may signal greater price volatility as these traders will quickly react to market changes. Large investor activity indicates a significant bullish trend. Perhaps the most impressive statistic comes from tracking the transactions of large holders. The cash flow of large holders has increased by over 5% in the past week, according to a report from IntoTheBlock. In the long term, this cash flow has increased by 324% in the past 30 days. The increase in activity of these whales indicates that large investors may be preparing for future price action, even though daily trading is still dominated by smaller, short-term traders.