A well-known cryptocurrency analyst, who accurately predicted the fall of Bitcoin in May 2021, is now foreseeing a bright future for the meme-inspired cryptocurrency Dogecoin. The analyst, known as Dave the Wave, with a substantial following on X (formerly Twitter), has suggested that Dogecoin is on the verge of a major breakout, pointing to a key resistance level that, once surpassed, could lead to a significant price surge.
Technical Patterns and Potential Breakout
Dave the Wave highlighted an optimistic scenario in a recent post, where he pointed out a bullish ascending triangle pattern forming on Dogecoin’s daily chart. This pattern, if confirmed by a breakout above the resistance level, could signal a substantial upward movement in the price of the cryptocurrency.
An ascending triangle is a technical chart pattern that consists of a horizontal line connecting high points and a rising line connecting low points, forming a triangle shape. Typically, this pattern indicates a continuation of the existing trend before the triangle formation.
Moreover, the analyst mentioned that Dogecoin might also be in a consolidation phase within a broader symmetrical triangle pattern. A breakout from this pattern could potentially drive Dogecoin’s price toward the $0.20 level, with a chance of reaching its all-time high of $0.73 during the current cycle.
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Surge in Network Activity
Recent data has shown a surge in activity on the Dogecoin network, with the cryptocurrency witnessing its highest spike in active addresses in the last six months. The number of active addresses on the blockchain surged to 84,306, indicating significant growth in the Dogecoin network.
According to on-chain analytics firm Santiment, shared by cryptocurrency analyst Ali Martinez, there has been a notable 72% increase in new DOGE addresses over the past week, with over 19,600 addresses added in a single day, showcasing a growing interest in Dogecoin.
The potential breakout and positive indicators surrounding Dogecoin are sparking optimism among investors and analysts, hinting at a promising trajectory for the meme-inspired cryptocurrency in the near future.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
