Dogecoin (DOGE) the leading memecoin with a market cap of more than $11.5 billion is starting to make a move that could result in an extraordinary price rally. The top memecoin’s weekly chart suggests that a breakout above the $0.0039 resistance level might finally happen.
DOGE teases weekly breakout
According to a Wednesday X post by crypto analyst Trader Tardigrade, DOGE is forming a clear bull pennant on the weekly chart. The analyst said that Dogecoin has formed the “cleanest compression” they have ever seen.
In trading, compression refers to a period of tightening price action where volatility decreases and the range between highs and lows narrows. This indicates a balance between buyers and sellers and can precede a significant breakout once price moves decisively above resistance or below support.
The trader added that DOGE is showing signs of a tight consolidation and decreasing volume within the bullish pennant as shown in the chart below.
Such a tight consolidation indicates that buyers and sellers are almost reaching an equilibrium, causing price volatility to contract as the market builds momentum for its next move. When this consolidation is with decreasing volume, it suggests that selling pressure is fading, increasing the likelihood of a strong breakout if buying interest returns.
Meanwhile, crypto analyst Nicholas Pantano shared an ambitious target for DOGE – as high as $1. Pantano predicted that DOGE is primed for a “big squeeze”, adding that a 8-00 percent surge to $0.50 is possible in the medium-term.
On the short-term, DOGE may be targeting the $0.08 price level as it tries to break out of a descending trendline. A move to this level would mean a price appreciation of about 10 percent in the coming days.
Whales quietly accumulate DOGE
While the retail sentiment toward DOGE still appears shaky on surfaces, whales are quietly bagging the top memecoin. According to exchange data on June 11, whales scooped up around 200 million DOGE coins.
Whales’ behavior makes sense in context of a possible rally in the memecoin sub-category of digital assets. Further, DOGE is not just about memes, as the cryptocurrency recently received a nod of approval from Paxos as the latter integrated it into its ecosystem.
