Dogecoin price shows a rare pattern, with Elliot Wave analysis suggesting a potential 110% surge

Dogecoin (DOGE), the largest meme coin in the cryptocurrency market, has recently seen a period of consolidation. At the time of writing, DOGE was trading around $0.36, which is approximately 25% below its highest point in 2024. Despite this short-term lull, there are several factors signaling that Dogecoin could experience significant price movement in the near future, with some analysts predicting a potential 110% surge based on its current technical setup.

One of the key factors contributing to the potential for Dogecoin’s rally is the growing interest among whales. Data from Santiment reveals that in just the last 24 hours, large holders, or “whales,” accumulated 590 million DOGE tokens. This follows a pattern of significant buying activity from whales in recent months, indicating that these large investors are positioning themselves for a potential price rebound. The increased accumulation could act as a precursor to a larger move upward in the price of DOGE.

Another catalyst for a potential price surge is the increasing likelihood of a spot DOGE exchange-traded fund (ETF) approval. This week, Rex Osprey, a firm managing over $8 billion in assets, filed for a spot Dogecoin ETF. If approved by the U.S. Securities and Exchange Commission (SEC), it could provide institutional investors with easier access to Dogecoin, further increasing demand and driving the price higher.

In addition to these fundamental factors, technical analysis points to a strong bullish setup for Dogecoin. The weekly chart for DOGE indicates that the coin has been in a consolidation phase for the past several weeks, entering the fourth phase of the Elliott Wave pattern. Typically, the fourth wave in this pattern is followed by the fifth wave, which is a bullish phase that could see significant price gains. This suggests that Dogecoin may be gearing up for a strong upward move in the near term.

Furthermore, Dogecoin has formed a bullish pennant chart pattern, which is often seen as a continuation pattern. A pennant pattern consists of a sharp move upward (the flagpole), followed by a symmetrical triangle (the pennant), indicating a period of consolidation before a potential breakout. Currently, Dogecoin’s pennant pattern is approaching its confluence level, a point where the price is likely to break out and resume its upward trajectory. Historically, a breakout from a pennant pattern often results in a strong price movement, and traders are watching for this potential move.

Adding to the bullish sentiment, the accumulation and distribution indicator for Dogecoin has been rising, signaling that more investors are actively purchasing the coin. This further suggests that there is growing optimism about DOGE’s future price action.

If the bullish technical patterns play out as expected, the next target for Dogecoin is its all-time high of $0.7491, which would represent a 110% increase from its current price. However, it’s important to note that the signals from a weekly chart can take time to materialize. For example, the pennant pattern has been forming for nearly three months, meaning that any potential breakout may not happen immediately, but rather over the next few weeks or months.

Additionally, the broader cryptocurrency market could play a significant role in DOGE’s price movement. The ongoing strength of Bitcoin, including potential Bitcoin price gains and the rising inflows into Bitcoin ETFs, could have a positive impact on altcoins like Dogecoin. As Bitcoin continues to show bullish momentum, it often triggers a ripple effect in the altcoin market, with Dogecoin being one of the coins that could benefit.

In summary, while Dogecoin is currently consolidating, the combination of whale accumulation, the potential approval of a spot DOGE ETF, and bullish technical patterns makes the meme coin a candidate for a substantial price increase. Traders and investors are closely watching for a breakout, with a potential 110% surge to its all-time high in the cards if the bullish scenario plays out. However, patience is key, as the signals from the weekly chart suggest that this move may take some time to fully materialize.