Dogecoin’s price action in the past 24 hours has been characterized by a consolidation around $0.33. Notably, this perambulation around the $0.33 mark has seen Dogecoin holding above an important trendline that could make or break its trajectory from here.
Interestingly, Dogecoin is also exhibiting what looks like the formation of a climax bottom, according to recent technical analysis of price action. This observation comes from crypto analyst Trader Tardigrade, who shared insights into Dogecoin’s price structure and a positive outlook for the king of meme coins.
Dogecoin Holds Strong Above Support Trendline
In a recent analysis on the social media platform X, Trader Tardigrade noted that Dogecoin has maintained its position above a vital support trendline. This support trendline, as shown by the price chart below, is located around $0.315, and has been a pertinent area of for Dogecoin since the middle of December 2024. This support level arose after Dogecoin briefly broke below the $0.27 mark on December 20 before rebounding upwards. As pointed out by Trader Tardigade, the ensuing structure from this break formed what was a selling climax.
However, the selling climax might not actually be the end of the correction. Instead, Dogecoin might still be in the process of completing a “selling climax bottom,” which is a more extended formation that sets the stage for a price correction bottom. At present, Dogecoin is retesting the support trendline at $0.315 following a recent surge to $0.39.
This retest is seen as a critical step in the broader price structure. According to Trader Tardigrade, the price action represents a “secondary test” (ST), a technical move that serves to confirm the validity of the selling climax bottom. By holding above this level, Dogecoin strengthens its chances of transitioning from the correction into an extended recovery upward.
DOGE To Show Signs Of Strength
Investors are closely monitoring for signs of strength in Dogecoin, and on-chain data suggests some investors may already be positioning themselves for the final boss move upwards. Trader Tardigrade echoes this sentiment, noting that Dogecoin will eventually show a sign of strength in the surge.
This surge is based on the expectation of a strong bounce from the selling climax bottom. In terms of a price target, Trader Tardigrade projected that the next move for Dogecoin is a push towards $0.66 in the next few weeks.
Speaking of investors positioning themselves for an upwards move for Dogecoin, on-chain data from Santiment shows that Dogecoin whale addresses have bought over 470 million DOGE tokens in the last 48 hours. As such, the total holdings of these whale addresses holding between 10 million and 100 million DOGE tokens now stand at 22.56 billion tokens, which is the highest in over 30 days.
At the time of writing, Dogecoin is trading at $0.332 and is up by 0.5% in the past 24 hours.
Featured image from WSJ, chart from TradingView