Dogecoin price has entered a consolidation phase near the yearly high of $0.4795.
Dogecoin (DOGE), the largest coin based on market capitalization, was trading at the psychological level of $0.4500 on December 5. It surged 450% from its lowest level this year, taking its market capitalization to more than $65 billion.
Analysts are optimistic that the ongoing consolidation could be the calm before the storm before the coin climbs to $1. In an article X, World of Charts noted that the coin could soon see a strong bullish breakout in the coming days.
A likely catalyst for DOGE price will be the ongoing rally in Bitcoin (BTC), now that it has broken through key resistance at $100,000. By surpassing this level, there is a good chance that many institutional investors and companies will start buying the coin. Higher BTC prices often lead to increased interest in even low-priced meme coins.
The price of Dogecoin may also skyrocket due to the continued sense of greed in the crypto industry. Data shows that the cryptocurrency fear and greed index surged to the extreme greed zone of 85. Additionally, the altcoin season index continued to rise, which will boost demand for the room.
Dogecoin price will also benefit from ongoing acquisitions by whales. Recent data shows that some whales have continued to accumulate coin. Data from ClankApp shows that whales moved coins worth over $3 million on December 5.
Dogecoin Price Chart Shows More Gains
The weekly chart shows that DOGE has already broken the important resistance level at $0.2265, its high from March 25. It has surpassed the 50 and 200 week moving averages. Dogecoin is also approaching the 38.2% Fibonacci retracement level.
However, the coin forms a small rising wedge chart pattern, a potentially dangerous pattern. Therefore, there is a risk that it will move lower and retest the support at $0.40 and then resume the uptrend.
Further gains will be confirmed if the bulls surpass the yearly high of $0.4795. If this happens, the coin could reach an all-time high of $0.7363 by December 31. Such a move would signal an increase of 65% from the current level. Investors would then consider moving to the coveted $1 level during this bull run.
A move below key support at $0.35 would invalidate the bullish view and put it at risk of falling to $0.2265, the highest point in April this year.
