Dogecoin price has risen significantly, with weekly RSI dropping to 61.84 after reaching overbought levels recently.
Previous occurrences of similar RSI retracement have always been a precursor to a significant price appreciation for DOGE as has been witnessed in the 2017 and 2021 cycles.
Experts believe that the current RSI level is the end of “wave 2” in the Dogecoin market, which then suggests further growth.
RSI is a momentum indicator, which determines the speed and direction of the price change. A drop from 94 which was the previous high shows that the overbought pressure has reduced to a certain level.
From previous trends, DOGE has seen a significant price increase following similar retracement patterns, thus providing hope to analysts who have made bullish predictions.
Whale Accumulation Boosts Market Confidence For Dogecoin Price
Whale activities have increased, and some of the biggest investors have bought more than 1.08 billion Dogecoins in the past 24 hours.
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This accumulation level generally indicates that major holders are becoming more confident and at the same time, the market becomes more liquid.
Such movements are often associated with the buying pressure, which is often a precursor to the rise in prices.
Analysts believe that whale movements are bullish indicators, as large amounts of tokens eliminate selling pressure and create a stable market outlook.
This activity corresponds with DOGE’s enhanced position within the market which can create the base for a future DOGE price surge.
DOGE Price Sees Uptick Amid Recovery
DOGE price has also witnessed a significant rise and has increased by 14.28% over the last 24 hours to trade at $0.3881.
New market capitalization stood at $57.23 billion while trading volume surged by 139.47% to $6.11 billion. This rally shows a good sign and proves that people are more and more interested in the cryptocurrency market.
The recovery comes after DOGE dipped by 46% in December from $0.4835 to below $0.26. At the moment, Dogecoin trading price is 47% lower than its all-time high of $0.7376 attained in the May 2021 market surge.
Some believe that a move above the $0.50 level could open the door for DOGE to challenge the $1 level.
Analysts Eye New Highs for Dogecoin
According to market analysts, Dogecoin still holds the potential to hit new all-time highs. Although some experts expect the price to grow to $1, others set higher goals and some of the long-term estimates vary between $1.5 and $2.
These estimates are supported by trends observed on the monthly RSI charts which are indicating that there is still potential for further price appreciation.
In addition, an analysis carried out in the recent past indicated that Dogecoin could soar to $20 or even more in the current bull market.
Both Analysts Javon Marks and Ali Martinez pointed to historical behavior and fractal patterns in Dogecoin as a token, which indicates the bulls’ path.
Fibonacci retracement levels, symmetrical triangles, and whale transactions supporting the upward momentum, both analysts foresee a breakout phase.
According to Martinez, the price of Dogecoin may be between $4 and $23 in this cycle due to the positive market sentiment.
