Making headlines in the crypto scene last week, Dogecoin (DOGE) jumped an astounding 20% in a few days. Renowned for its meme beginnings and devoted following, the coin moved from $0.10745 to a peak of $0.13080. Many people were perplexed by this surprising surge and questioned what might have produced such a sharp change.
‘No Idea’
Prominent for his sardonic views on the crypto market, co-creator Billy Markus answered nothing. Emphasizing the erratic character of cryptocurrencies, he said he had “no idea” why the price jumped so much.
Q&A
Q: why is dogecoin up 20% this week?
A: no idea
— Shibetoshi Nakamoto (@BillyM2k) September 29, 2024
Having lightened the mood, Markus headed to the X platform to connect with his followers. Commenting on how prompt he was in addressing this huge change in the market, Markus said, “It’s pretty almost my answer to everything crypto price related.” It’s a statement that epitomizes not just his humor but also the ultimate reality faced by so many crypto enthusiasts: a lot of art and not so much science when predicting a price move.
Closely tracking Dogecoin is another analyst – Trader Tardigrade. On the monthly graph of Dogecoin, he noted a technical pattern sometimes referred to as the Falling wedge. This trend sometimes shows positive reversals, implying that the coin might be about to undergo notable price rise. Tardigrade’s observations add still another level of mystery since he calls this era “DOGE season,” stressing the coin’s possible upcoming trajectory for significant gains depending on past trends.
#Dogecoin monthly chart shows early sign of breakout to a Falling Wedge, which kicks off the start of $DOGE season 🔥
The pattern is almost the same as last two cycles.
There’s no reason for this time is different.
Send $DOGE to $1.6, Doge fam 🚀 pic.twitter.com/snqNsDpIhO— Trader Tardigrade (@TATrader_Alan) September 29, 2024
Whale Activity Drives Price Explosion
The increase in whale activity is most likely the cause of Dogecoin’s amazing climb. Major cryptocurrency owners grabbed 1.4 billion DOGE over just 48 hours, valued roughly $140 million. Such large acquisitions can cause waves in the market that raise prices and draw interest from smaller investors.
Another unidentified whale arrived on the scene purchasing an extra 1.4 billion DOGE, which caused Markus to react with a little surprise or confusion. His surprise emphasizes the peculiar characteristics of the crypto market, in which big holdings can greatly affect pricing.
Markus stated that he is not planning to introduce any new cryptocurrencies, even if he is absolutely instrumental in building Dogecoin back in 2013. He advised prospective buyers against believing fraudulent assertions regarding his participation in other initiatives. Those who are thinking about investing in the often shifting terrain of cryptocurrencies, where false information can proliferate like wildfire, depend on this clarity.
Analysts See Potential Breakout
With excitement building, some analysts even suggest that Dogecoin could be on the brink of a big breakout. As of this writing, the tone in the crypto space remains positive. Experts believe DOGE can shoot up all the way to a price of $1.6 in the near future. The identification by Tardigrade of the Falling Wedge pattern is one decent reason for such optimism as this pattern had historically preceded some mammoth price rallies for Dogecoin.
Featured image from StormGain, chart from TradingView