The demand for Dogecoin by whale traders has significantly increased in the recent past with Musk reminding investors that he is the Dogefather.
After closing last week trading above 36 cents for the first time since May 2021, Dogecoin price DOGE $0.17 24h volatility: 2.9% Market cap: $24.74 B Vol. 24h: $1.94 B is now en route towards a new all-time high (ATH) in the near term. The flagship meme coin, with a fully diluted valuation of about $56 billion and a daily average traded volume of over $9.3 billion, gained 2 percent in the last 24 hours to trade about $0.382 on Tuesday, November 19, during the mid-London session.
However, the Dogecoin price could likely consolidate around the current range before breaking out of the resistance level of around 43 cents. Moreover, a similar pattern happened during the 2020/2021 crypto bull market, which saw DOGE price consolidate below its ATH before entering the parabolic phase.
In the four-hour time frame, Dogecoin price has been consolidating in a descending triangular pattern, with the base support level around 35 cents. As a result, a consistent close above 43 cents for DOGE price will pump the meme coin toward a new all-time high.
Crypto analyst Ali Martinez has set a midterm target of about 82 cents if Bitcoin price continues to trade above 37 cents in the coming days. The bullish sentiment will, however, be invalidated if the Dogecoin price breaches the support level of around 35 cents, which could further escalate the ongoing correction toward the support level of around 29 cents.
#Dogecoin $DOGE is breaking out of a bull flag, which anticipates a 120% rally to $0.82 as long as the $0.37 support holds. pic.twitter.com/JPrGIzBnUn
— Ali (@ali_charts) November 19, 2024
Major Factors Fueling Bullish Sentiment for Dogecoin
The Dogecoin network has grown to a vibrant meme coin community despite the low developments compared to other layer one (L1) blockchains. According to the latest on-chain data, the Dogecoin network had over 5.3 million holders, out of which the majority are retail traders with less than $1K in balances.
However, whale addresses on the Dogecoin network have continued to grow since the conclusion of the United States 2024 elections, earlier this month.
The overwhelming support of pro-crypto leaders in the United States, led by President-elect Donald Trump, has played a major role in Dogecoin’s bullish breakout. Moreover, Trump recently appointed tech billionaire Elon Musk to lead the Department of Government Efficiency (D.O.G.E), which was inspired by the dog-themed meme coin.
— Elon Musk (@elonmusk) November 19, 2024
Previously, Musk has confirmed that he continues to hold a bunch of Dogecoin and reiterated his support in the long haul. Consequently, the Dogecoin community anticipates Musk to integrate the meme coin with the X payments, including to enable merchandise purchases.
Amid the growing adoption of Dogecoin institutional investors, led by Spirit Blockchain Capital Inc (CSE: SPIR), a blockchain tech and digital asset management firm, which recently acquired the Dogecoin Portfolio Holdings Corp.
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