Dogecoin has seen significant activity from large investors, or “whales,” who have seized the recent price dip to purchase a massive 750 million DOGE. Analysts believe that as long as Dogecoin stays above $0.19, the foundation is set for a potential parabolic rally, with some predicting a price surge to as high as $10 if momentum continues to build.
Crypto trader and pseudonymous analyst Bluntz, known for his expertise in the Elliott Wave theory, suggests that Dogecoin has completed an ABC corrective wave against both the U.S. dollar and Bitcoin. According to the theory, such a pullback often precedes a five-wave rally, leading Bluntz to predict a possible 200% surge for the meme coin from its current levels.
“Memes are largely out of favor right now, and Dogecoin has been getting dunked on. But with DOGE looking like this, it may be time for a massive rally. HUGE ABC down on the [daily chart] on both the USD and BTC pair. Potential 2-3x coming up,” Bluntz said.
As of now, Dogecoin is trading at $0.24.
Floki and Other Memecoins Gaining Momentum
Bluntz also sees bullish signals in another meme token, Floki, which is showing a bullish divergence on the daily chart. This could suggest an upcoming price reversal for the token.
“There’s a monster FLOKI bullish divergence here after it swept a major level. It could print today or tomorrow,” Bluntz wrote. “Whether you love it or hate it, the meme trend is probably making a comeback.”
Despite the broader market downturn, with Bitcoin dropping nearly 9% in the past week and many other top cryptocurrencies performing poorly, Dogecoin and other memecoins like XRP and Cardano have been among the hardest hit, losing around 26% in the past seven days.
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