The price of Dogecoin has fallen by 1.6% and is currently trading around $0.1071, which is not a good performance. One analyst said that a wave of increases may be coming, mentioning a market pattern similar to the 2021 Dogecoin surge.
As a meme cryptocurrency, Dogecoin [DOGE] has experienced quite a bit of volatility over the past week, despite some previous attempts to rebound.
Although Dogecoin has gained 2.7% over the past week, showing a slight upward trend, the overall performance is still disappointing.
In the past 24 hours, its price had dropped to a low of $0.1065 before recovering slightly to $0.1071.
This means it is down 1.6% from yesterday, exacerbating investors' doubts about its future recovery ability and its performance remains weak.
Dogecoin’s Historical Pattern
One interesting development is from the well-known cryptocurrency analyst Trader Tardigrade, who expressed his optimistic expectations for Dogecoin on the X platform (formerly Twitter).
The analyst mentioned a technical pattern called the “Williams Alligator,” which he believes could mean Dogecoin is approaching an opportunity for a major upside move.
Trader Tardigrade pointed out that the current pattern began to break out after a long period of decline, which is very similar to the consolidation stage before the big rise in 2021. This discovery has sparked discussions about whether Dogecoin is about to usher in another big rise.
An upcoming surge?
While technical analysis shows that Dogecoin has the potential to rise, a deeper look at its fundamentals may provide a clearer guide to future trends. One important indicator to watch is the relative strength index (RSI), which measures the speed and change of prices.
According to CryptoQuant data, the current RSI of Dogecoin is 38, which is in the neutral range.
This shows that Dogecoin is currently neither overbought nor oversold, and the market still has room to fluctuate in either direction depending on market conditions.
In addition to RSI, whale trading activities are also an important clue to analyzing market dynamics. Whale transactions usually refer to transfers of more than $100,000 and are often seen as a sign of institutional or high-net-worth investor movements.
Data shows that the number of Dogecoin whale transactions decreased significantly this month, from 1.56 thousand to the current 1.1 thousand. This reduction could mean a decrease in interest or confidence among big-money investors, which could reduce Dogecoin’s chances of a significant near-term rise.
