As a seasoned researcher with over two decades of experience in the cryptocurrency market, I have witnessed numerous price surges and corrections. The current pattern of Dogecoin (DOGE) closely resembles its behavior prior to the massive 8000% surge in 2021, which has sparked predictions of another potential mega rally. However, history doesn’t always repeat itself, especially in this wild west of crypto.
After a significant rise, Dogecoin’s price has settled at approximately $0.40. This recent market trend appears similar to the pattern Dogecoin showed before its unprecedented 8,000% increase in 2021, which has sparked speculation about another possible major surge ahead.
Since dipping to its lows in August earlier this year, the Dogecoin price has experienced an impressive surge of 480%, with approximately 220% of those gains occurring after Donald Trump’s victory last month. However, despite these significant increases, the value of DOGE has been relatively stable within a narrow band of $0.39 to $0.48. Reminiscent of the setup preceding the massive 2021 rally, it appears Dogecoin could be gearing up for another potential price surge.
- DOGEUSDT
- As said, the current consolidation phase for Dogecoin price mirrors that of early 2021, wherein the meme coin experienced a massive breakout following the sideways trend for a while. Additionally, the weekly relative strength index (RSI) for DOGE has entered overbought territory above 70, a typical signal of a potential price correction or consolidation.
- However, in 2021, similar overbought conditions led to continued bullish momentum rather than a downturn. If historical trends repeat, DOGE could target $0.75 by January 2025, based on Fibonacci retracement projections, signaling a potential 85% price surge.
Dogecoin Whale Accumulation on the Rise
The surge in the Dogecoin price is backed by on-chain data as significant accumulation by large investors (whales) continues. According to Messari, these substantial investors now control approximately 130.17 billion DOGE – a record high – in addresses holding a million DOGE or more. This increase in whale activity indicates growing optimism among large-scale investors about Dogecoin’s potential for continued growth.
- Courtesy: Messari
- A similar surge in the DOGE supply held by whales occurred during the 2021 rally, when the amount held by these addresses rose from 110.31 billion to 112.46 billion.
Beyond doubt, Elon Musk’s persistent impact is crucial in shaping Dogecoin’s price fluctuations. His repeated tweets endorsing the meme coin played a vital role during the 2020-2021 rally, significantly boosting its price upward momentum.
DOGE Community Members Reject Network Attack Claims
Andreas Kohl, one of the founders at Sequentia Network, has admitted to causing significant disruption within the Dogecoin network. In a recent post on X, this Bitcoin sidechain developer explained that he took advantage of a weakness called “DogeReaper,” which enabled him to remotely shut down approximately 69% of Dogecoin servers.
Mishaboar, an active member of the Dogecoin community, highlighted that the “DogeReaper” weakness, which Andreas Kohl took advantage of, was actually addressed and fixed in a node update that was distributed two weeks earlier.
In addition to challenging Kohl’s assertions, Mishaboar expressed doubts about the credibility of the data Kohl based his arguments on. Specifically, Kohl utilized data from Blockchair, which suggested a decrease in active Dogecoin nodes from 647 to 205 following the reported attack. Nevertheless, Mishaboar pointed out that the data provided by Blockchair is not all-inclusive.
Moreover, Mishaboar highlighted that the Dogecoin system can operate efficiently with fewer active nodes. Similarly, Bitcoin developer Peter Todd agreed, pointing out that the network’s decentralized structure gives it strength and resistance to such disturbances.
What stands out is that, despite removing approximately 69% of Dogecoin nodes visible to the public, it’s unlikely to have any significant impact.
It takes a _lot_ to break the consensus in flood fill networks.
— Peter Todd (@peterktodd) December 12, 2024
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2024-12-13 19:15