Dogecoin, the popular meme cryptocurrency, has been making headlines in the past 24 hours as its price action remains steady around the $0.33 mark. This consolidation phase has seen Dogecoin holding above a crucial trendline, indicating a potential shift in its trajectory.
A recent analysis by crypto analyst Trader Tardigrade suggests that Dogecoin is showing signs of forming a climax bottom, a pattern that could signal a bullish trend for the cryptocurrency. The support trendline, located at around $0.315, has been a key area for Dogecoin since mid-December 2024. After briefly dipping below $0.27, Dogecoin rebounded and formed what appeared to be a selling climax.
However, Trader Tardigrade believes that Dogecoin may still be in the process of completing a selling climax bottom, which could pave the way for a price correction bottom. The current retest of the support trendline at $0.315 is seen as a critical step in confirming this pattern.
Investors are eagerly watching for signs of strength in Dogecoin, with on-chain data indicating that some investors are positioning themselves for a potential upward move. Dogecoin whale addresses have reportedly purchased over 470 million DOGE tokens in the last 48 hours, pushing the total holdings of these addresses to 22.56 billion tokens, the highest in over 30 days.
Trader Tardigrade predicts that Dogecoin could see a push towards $0.66 in the coming weeks, based on the expectation of a strong bounce from the selling climax bottom. At the time of writing, Dogecoin is trading at $0.332, up by 0.5% in the past 24 hours.
Overall, the outlook for Dogecoin appears positive, with the cryptocurrency showing resilience above key support levels and attracting interest from investors. As the market continues to evolve, all eyes will be on Dogecoin to see if it can maintain its current momentum and potentially embark on a new bullish trend.