Coinspeaker
13 December 2024
2 0

Dogecoin Price Stabilizes Around $0.40 Amid Potential Breakout

Dogecoin's price has stabilized around $0.40 after a significant rally, resembling its behavior prior to the 8,000% surge in 2021. Following lows in August, Dogecoin has bounced back 480%, with 220% of gains occurring after Donald Trump's recent victory. Currently, DOGE is consolidating within a narrow range of $0.39–$0.48, echoing patterns seen before the 2021 rally.

DOGEUSDT

This consolidation phase mirrors early 2021, where Dogecoin experienced a breakout following a sideways trend. The weekly relative strength index (RSI) for DOGE is currently above 70, indicating potential price correction or consolidation. However, similar conditions in 2021 led to continued bullish momentum. If historical trends repeat, DOGE could target $0.75 by January 2025, suggesting an 85% price increase based on Fibonacci retracement projections.

Dogecoin Whale Accumulation on the Rise

On-chain data indicates strong whale accumulation supporting the price rally. According to Messari, addresses holding 1 million DOGE or more now control 130.17 billion DOGE, an all-time high. This rise in whale addresses reflects increased confidence among large investors regarding Dogecoin's growth potential.

Courtesy: Messari

A similar accumulation occurred during the 2021 rally when the amount held by whale addresses rose from 110.31 billion to 112.46 billion. Elon Musk’s influence also remains significant; his tweets supporting Dogecoin were crucial during the 2020-2021 price surge.

DOGE Community Members Reject Network Attack Claims

Andreas Kohl, co-founder of Sequentia Network, claimed responsibility for disrupting a portion of the Dogecoin network, asserting he exploited a vulnerability called “DogeReaper” to crash 69% of Dogecoin nodes. However, community member “Mishaboar” noted that this vulnerability had been disclosed and patched two weeks earlier.

Mishaboar questioned the reliability of Kohl's claims, which were based on Blockchair data showing a drop in online nodes. He emphasized that the Dogecoin network can operate efficiently even with fewer live nodes. Bitcoin developer Peter Todd supported this view, stating that the network's decentralized design enhances resilience against such disruptions.