Dogecoin price chart is showing striking similarities to previous bull runs, with key technical indicators like the PMO signaling growth. Combined with substantial whale transfers, the stage is set for a possible breakout, though market corrections may provide healthy pauses in the overall uptrend.
Analyst Sees Dogecoin Price Poised for Major Rally
The chart shows Dogecoin’s weekly Price Momentum Oscillator (PMO) showing a new bull run may be in the making. In previous instances where the PMO went bullish and crossed bullish thresholds, we’ve seen hefty rallies in 2017 and 2021.
The PMO is curving upward towards smaller increments. Similar to earlier patterns that initiated explosive growth on their own, indicating an early stage of another major rally.
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Analyst Trader Tardigrade points out that each bull run had long consolidation phases before breakout momentum was confirmed.
The fact that PMO signals matched the start of bull markets for Dogecoin is consistent enough to demonstrate that the Dogecoin PMO is a reliable trend indicator for the asset. The upward swing of PMO implies an upward surge in market strength and revived buying pressure.
According to historical patterns, DOGE may be in the midst of another large rally and has plenty of upside potential.
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Yet this trend would need to sustain some momentum and price action bullish confirmation.
Massive DOGE Whale Transfers Spark Market Speculation
Within the course of six hours, Whale Alert reports on massive transfers of 1.1 billion DOGE, over $445 million between unknown wallets.
While the transactions reflect significant whale activity, the transactions include 300 million DOGE worth $121.3m twice and 500 million DOGE worth $202.3m just once. They imply massive, non-instrumental trading away from exchanges.
Such absence of involvement of exchange with these transactions suggests that they could relate to internal wallet restructurization, OTC (over-the-counter) dealings, or plans for strategic development of a big player.
Large transfers are often precursors to significant price volatility as they signal heavy hand movement, whether asset accumulation or liquidation.
Additional large transfers or changes in wallet activity will be watched by market participants very closely. If these movements are going to result in additional accumulation, then they could add bullishness to DOGE.
On the flipside, if you see assets draining into exchanges, it could be to indicate a type of selling pressure that contributes to short-term price volatility.
Corrections Signal Healthy Pauses in Dogecoin’s Broader Bull Trend
Dogecoin’s on a historic rally, highlighted in the chart, within a parabolic channel, with the current rally being strikingly similar to patterns from 2017 and 2020.
At these times, TD sell signals indicated the upper boundary of the channel, when the price temporarily stalled briefly and then continued its bullish trajectory. The latest TD signal indicates a possibility of a correction before the rally will continue. Analyst Ali_charts says,
“Parabolic moves like this are what we call a time to consolidate, not a time to reverse.”
Short-term sell signals still show that the price remains within the parabolic channel, with the broader uptrend still intact. This is in line with thinking that corrections are healthy pauses in Dogecoin’s broader bull run.
If Dogecoin wants to keep the rally alive, we need some key support levels near the midline of the channel. If the price is able to sustain a move above the upper boundary, there would be accelerated bullish momentum, and the price could move to new highs.
On the other hand, if the correction continues, the token should carefully follow the lower channel boundary, as this can serve as critical support in the long-term uptrend.
