Dogecoin (CRYPTO: DOGE) is hinting at a possible price surge in the wake of its remarkable rally.
Since hitting its lowest point in August, Dogecoin has seen a 480% recovery, including a 220% rally post the November presidential election. At present, DOGE is oscillating between $0.39 and $0.48, similar to its early 2021 consolidation phase.
Onchain data from Messari reveals that whale addresses holding 1 million DOGE or more now possess 130.2 billion DOGE, a record high. This signifies increasing confidence among large investors in Dogecoin’s potential for growth.
According to report, a comparable surge in the DOGE holdings of whale addresses was observed during the 2021 rally, with their total rising from 110.3 billion to a peak of 112.5 billion.
Also Read: Dogecoin’s Whopping 60.9B Movement In 24 Hours: A Bullish Sign?
The weekly relative strength index (RSI) has crossed the overbought threshold of 70, indicating a possible price correction or extended consolidation. However, in 2021, similar conditions resulted in a bullish continuation rather than a significant drop.
If the trend continues, then DOGE could reach $0.75 by January 2025, marking an 85% price surge, as suggested by Fibonacci retracement projections.
While the cryptocurrency market is notoriously volatile, Dogecoin’s potential price surge is noteworthy. The coin’s recovery from its August lows and the increase in large investors holding the coin suggest a growing confidence in its value.
Furthermore, the continued support from influential figures like Elon Musk could further drive its performance.
However, potential investors should be aware of the risks associated with such investments, given the unpredictable nature of the market.
At the time of writing, Dogecoin was trading at $0.4047, down by about 1% in the last 24 hours.
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