The Progenitor of MEME Coins: DOGE
DOGE (Department of Government Efficiency) and the patriarch of MEME coins, Dogecoin, share the same name (also known as the Chinese term "Dogecoin").
Dogecoin (DOGE), as the elder statesman of MEME coins, draws its creative inspiration from the then-popular "Doge" meme (with the original being a Shiba Inu named Kabosu).
Dogecoin was established in 2013 by software engineers Billy Markus and Jackson Palmer, who initially aimed to create a lighthearted and enjoyable cryptocurrency to satirize the speculative frenzy in the cryptocurrency market at the time. Dogecoin was an immediate success upon its launch, receiving enthusiastic welcome on websites like Reddit, and was even used as a tipping currency.
Musk also has a deep connection with Dogecoin. In April 2019, Musk tweeted that Dogecoin is his favorite cryptocurrency, and he thinks Dogecoin is "cool".
In the May 2021 episode of "Saturday Night Live", Musk referred to himself as the "Dogefather" and called Dogecoin the "people's cryptocurrency". Over time, Musk has become deeply intertwined with Dogecoin and has even become the public face of the Dogecoin image.
To date, DOGE has weathered 4 bull-bear cycles, yet it still firmly sits among the top 10 cryptocurrencies by market capitalization.
Dogecoin Price Breaks Through the Legendary Pennant Pattern
In a post on X (formerly Twitter) on November 11th, cryptocurrency analyst Trader Tardigrade revealed a major update on the price dynamics of Dogecoin (DOGE). According to the analyst, the Dogecoin price has officially broken through the "legendary bullish pennant" pattern.
The analyst shared a price chart that illustrates Dogecoin's price movement from 2019 to the present. Trader Tardigrade emphasized that Dogecoin began forming this unique triangular pattern in 2021 as MEME coins gained increasing popularity.
However, as the analyst pointed out, 2024 will be a crucial year, as Dogecoin's price has now broken out of the bullish pennant pattern, signaling that the popular MEME-based cryptocurrency is entering a new bullish phase. The Bull Pennant pattern is a technical indicator typically associated with a potential uptrend, and according to the cryptocurrency analyst, Dogecoin may be on the verge of a significant price surge to $15.
While this price target may sound overly ambitious to some investors, it is important to note that within just a month, Dogecoin has already surged by 260.94% and is still climbing. Today, Dogecoin skyrocketed by 44.69%, with its market capitalization approaching the $60 billion mark. Dogecoin's recent breakout of the Bull Pennant formation may be attributed to the confluence of bullish factors that have driven its price higher in the past few weeks. The D.O.G.E proposal by SpaceX CEO Elon Musk and the support from former US President Donald Trump have helped shift market sentiment, propelling Dogecoin to new highs. The popular MEME coin is now realizing gains that have not been seen since the last bull market four years ago.
If these bullish factors continue to drive Dogecoin, and the MEME coin maintains its momentum, its price could potentially reach new ATHs within this cycle. As of the time of writing, the Dogecoin price is $0.4, more than doubling earlier this month.
Dogecoin Faces Resistance
Dogecoin (DOGE) has recently seen a significant surge, breaking above $0.320 and reaching a high of $0.4342. However, as with many price spikes, resistance levels have started to come into play, and Dogecoin has begun to cool off. Currently, Dogecoin is holding above $0.3650, stabilizing near the 100-hour simple moving average, which is typically a positive technical signal.
However, there are strong resistance levels at $0.400 and $0.4150. If Dogecoin wants to move higher, reaching $0.4500 or even $0.4650 will be crucial. If it successfully breaks through these hurdles, it may signal another leg up. But if the price struggles at these levels, Dogecoin may find itself retreating.
DOGE Whale Activity
Currently, it is an interesting time for Dogecoin investors. Data from IntoTheBlock shows that approximately 96% of Dogecoin holders are in a profitable position, with only 2% in a loss. These figures suggest a solid Dogecoin holder base, with happy long-term investors. However, some large players (often referred to as whales) have slightly higher short positions than Dogecoin's current price, indicating that they do not believe Dogecoin will break out immediately.
These whales are important because they often set price ranges to keep DOGE stable. Their cautious approach may suggest that they are waiting for stronger support below before lending their support to another ascent.
Technical Trends and Support Levels
Technical analysis has also provided some useful signals. A trendline has formed around $0.3870, which coincides with the 61.8% Fibonacci retracement level of Dogecoin's recent highs and lows. The area around $0.3870 may provide strong support, and if Dogecoin faces more pressure, it is likely to stabilize there.
However, if Dogecoin breaks below this level, it may test support as low as $0.3420, or even $0.3150. Therefore, while there is a clear path for further upside, a breach of these levels could signal a short-term correction.
Expectations
Dogecoin's recent surge has certainly captured a lot of attention, and the market is undoubtedly excited. However, given the resistance levels and the cautious behavior of whales, this may not be a clear-cut bullish trend. If Dogecoin can maintain above its key support areas, we may soon see it attempt higher prices. However, a breach of $0.3420 could lead to a temporary pause in the uptrend.
As with any cryptocurrency, the future of Dogecoin is uncertain, but its current price action provides some strategic considerations worth closely monitoring for investors. With Bitcoin nearing $100,000, there are high expectations for Dogecoin to set new highs.
