Dogecoin price is still stuck in a bear market after crashing by almost 70% from its last year’s high. This performance is happening as on-chain data shows that whales are capitulating and dumping their tokens. Still, one popular crypto analyst believes that the DOGE price will bounce back if it flips a key resistance level.
Analyst Explains How Dogecoin Price Rises as Whales Capitulate
Third-party data shows that DOGE whales have continued selling their positions as the coin crashes in a bear market. According to Santiment, these whales have been in a selling spree since April 4, a trend that is gaining steam. They have sold billions of tokens in this period.
Another data shows that the network realized profit/loss has crashed to minus 107.3 million. It has remained in the negative zone since February this year. The NPL is a popular data that shows the aggregate profit or loss realized by all holders of a token in a certain period. A negative figure means that these tokens are moving at a loss, implying capitulation.
Still, one crypto analyst believes that Dogecoin price may bounce back soon. In an X post, Olivier Maximus, an anonymous trader, noted that the Dogecoin price was still in a downtrend. However, he predicted that a bullish breakout will be possible if it prints a new higher low. If this happens, the coin will eventually jump to $0.35, up by 130% from the current level.
Other crypto analysts are bullish on DOGE price. In an X post, Steph is Crypto, a popular user with over 150k followers, predicted that it would surge to $1 in the next 2 to 3 months. He pointed to the weekly chart, which shows that it has been forming a series of higher highs and higher lows for a while.
DOGE Price Technical Analysis
The daily chart shows that a bullish case can be made even as the coin remains in a steep sell-off. It has formed an inverse head and shoulders pattern, a popular bullish reversal pattern.
Further, Dogecoin price has formed a small double-bottom pattern at $0.1425. The neckline of this pattern is at $0.2047, the highest swing on March 26. This pattern also usually leads to a bullish breakout.
Therefore, the coin will likely bounce back in the near term. This view will be confirmed if it rises above the descending trendline, which is acting as the neckline of the inverse H&S pattern. It will also be confirmed if it rises above the 50-day moving average, which has provided strong resistance in the past few months.
A drop below the double-bottom point at $0.1425 will cancel the Dogecoin price forecast. It will signal that bears have prevailed and risk it falling to the psychological point at $0.10.
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