• Dogecoin price breaks out of a falling wedge pattern, signaling a 75% ascent.
  • The number of long-term holders of DOGE continues to skyrocket despite the lackluster performance in the second half of 2021.
  • A weekly candlestick close below $0.11 will invalidate the bullish thesis.

Dogecoin price has been on a constant downtrend since its all-time high in May 2021. This setup is crucial since it was breached last week and shows no signs of slowing down

Dogecoin price continues to make headway

Dogecoin price set up four lower highs and five lower lows since May 3, 2021. Connecting these swing points using trend lines results in a falling wedge formation. The technical formation forecasts a 75% ascent to $0.216, obtained by adding the distance between the first swing high and low to the breakout point.

Interestingly, the Dogecoin price breached the falling wedge’s upper trend line on March 21, at $0.123. Since then, DOGE has rallied 21% and has already started the week green, indicating more gains in the near future.

DOGE/USDT 1-day chart

DOGE/USDT 1-day chart

While things are looking up from a technical perspective the number of long-term investors or holders that hold DOGE for more than a year, seems to have been increasing despite the lackluster performance of Dogecoin price for the better part of 2021.

The number of such investors has increased from 1.7 million addresses to 2 million since 2020, indicating a 17% uptick and an interest from these holders at the current price levels.

Interestingly, the cruisers that often hold DOGE for less than a year have also skyrocketed from  1.92 million in March 2021 to 2.05 million in March 2022. However, between March 9 and March 28, a large chunk of these investors seem to have exited their positions and the number has dropped to 1.64 million.

DOGE addresses by time held

DOGE addresses by time held.

Regardless of the massively bullish outlook for Dogecoin price, a bearish outlook awaits, if DOGE undoes the last week’s gains.

A weekly candlestick close below $0.11 will invalidate the bullish thesis for Dogecoin price. This development would open the path for DOGE to explore lower levels such as $0.087, where buyers might step in and cauterize the wound.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Shiba Inu price edges close to a 60% breakout as bears watch in disbelief

Shiba Inu price edges close to a 60% breakout as bears watch in disbelief

Shiba Inu price has managed to stay above the POC at $0.0000118, indicating support from bulls. A continuation of this momentum could trigger a 60% rally to $0.0000200. A daily candlestick close below the $0.0000106 support level will invalidate the bullish thesis for SHIB.

More Shiba Inu news

XRP price attempts a 15% rally on Ripple’s interest in buying Celsius' assets

XRP price attempts a 15% rally on Ripple’s interest in buying Celsius' assets

XRP price shows a willingness to move above a significant resistance level, which it has attempted to do so for the past three months and failed each time. While this attempt is like any other and could fail, especially if the momentum is lacking. 

More Ripple news

Avalanche price makes a turn for the better

Avalanche price makes a turn for the better

Avalanche price shows classic ramping pattern accompanied with price ascension. AVAX price has breached the oversold level on the Relative Strength Index. If the technicals are correct, a breach of the $50 barrier could happen rapidly.

More Avalanche news

Binance Coin Price Prediction: Whales take naps at the shore

Binance Coin Price Prediction: Whales take naps at the shore

Binance coin shows reasons to believe in a market bottom. Traders should keep the smart contract giant on their watchlists throughout the summer. Binance coin price is beginning to show evidence of strength.

More Bitcoin news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP