Despite previous attempts to rally, Dogecoin [DOGE], the cryptocurrency inspired by memes, has been facing market volatility over the last week.
Although Dogecoin showed a slight uptrend of 2.7% last week, its recent performance has been lackluster.
The value of the cryptocurrency has decreased over the past 24 hours, reaching a low of $0.1065 before recovering slightly to $0.1071 at the time of writing.
This drop represents a 1.6% decline in the last day, contributing to a slow pattern that has led many investors to question whether the asset can make a comeback.
DOGE’s Historical Trend
A significant development came from a well-known crypto analyst called Trader Tardigrade, who expressed optimism about Dogecoin on X (formerly Twitter).
The analyst highlighted a technical pattern called the “Williams Alligator,” indicating that Dogecoin might be gearing up for a breakout.
Trader Tardigrade pointed out that this pattern, which emerged after breaking a long-term downtrend, resembled a consolidation phase that preceded the major bull run in 2021.
This insight has triggered conversations about the potential for another significant surge in Dogecoin in the coming days.
Is a Bull Run Approaching?
Although the technical analysis suggests a possible bullish momentum, a more thorough examination of Dogecoin’s fundamentals could provide a clearer view of the asset’s future direction.
One crucial metric to monitor is the Relative Strength Index (RSI), which gauges the speed and magnitude of price shifts.
As indicated by data from CryptoQuant, Dogecoin’s RSI currently stands at a neutral level of 38, implying that the asset is neither oversold nor overbought, leaving room for movement in either direction depending on market sentiment.
In addition to RSI, observing whale activity can offer valuable insights into market dynamics.
Transactions involving whales—those exceeding $100,000—are often considered a gauge of institutional or high-net-worth investor engagement.
Information from IntoTheBlock reveals a substantial drop in Dogecoin’s whale transactions this month, decreasing from 1.56k to 1.1k at the latest count.
This decline might indicate waning interest or confidence among significant investors, potentially affecting the chances of an immediate price upsurge.