Dogecoin price has rallied significantly, with the weekly RSI falling to 61.84 after recently reaching overbought levels.
Previous occurrences of a similar RSI retracement have always been a precursor to significant price increases for DOGE as witnessed in the 2017 and 2021 cycles.
Experts believe that the current RSI level is the end of “wave 2” in the Dogecoin market, which then suggests further growth.
RSI is a momentum indicator, which determines the speed and direction of price change. The decline from 94, which was the previous high, shows that overbought pressure has eased to some level.
From the previous trends, DOGE has seen a significant increase in price following similar retracement patterns, thus giving hope to analysts who had made bullish predictions.
Accumulation of whales boosts market confidence for dogecoin price
Whale activity has increased, with some of the biggest investors buying more than 1.08 billion Dogecoins in the last 24 hours.
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This level of accumulation generally indicates that the principal holders are becoming more secure and at the same time the market is becoming more liquid.
Such movements are often associated with buying pressure, which is often a precursor to rising prices.
Analysts believe that whale movements are bullish indicators, as large volumes of tokens eliminate selling pressure and create a stable market outlook.
This activity corresponds to DOGE’s improved position in the market, which may create the basis for a future jump in DOGE’s prices.
The DOGE price is seeing an increase amid the recovery
The price of DOGA also witnessed a significant increase and increased by 14.28% in the last 24 hours to $0.3881.
The new market capitalization was $57.23 billion while trading volume increased by 139.47% to $6.11 billion. This rally shows a good sign and proves that people are more and more interested in the cryptocurrency market.
The recovery comes after DOGE fell 46% in December from $0.4835 to below $0.26. Dogecoin is currently trading 47% below its all-time high of $0.7376 reached in the May 2021 market spike.
Some believe that a move above the $0.50 level could open the door for DOGE to challenge the $1 level.
Analysts expect new highs for Dogecoin
According to market analysts, Dogecoin still has the potential to hit new all-time highs. While some experts expect the price to rise to $1, others are setting higher targets, with some long-term estimates ranging between $1.5 and $2.
These estimates are supported by the trends observed on the monthly RSI charts which show that there is still potential for further price appreciation.
In addition, analysis conducted in the recent past indicated that Dogecoin could rise to $20 or even higher in the current bull market.
Both analysts Javon Marks and Ali Martinez pointed to historical behavior and fractal patterns in Dogecoin as a token, indicating a bullish trajectory.
Fibonacci retracement levels, symmetrical triangles and large transactions supporting the upward momentum, both analysts predict a breakout phase.
According to Martinez, the price of Dogecoin could be between $4 and $23 in this cycle due to positive market sentiment.
