Dogecoin, the largest meme coin by market capitalization, has entered a consolidation phase near its year-to-date high of $0.4795. On December 5, it was trading at the psychological level of $0.4500, having surged 450% from its lowest point this year and pushing its market cap over $65 billion.
Analysts are upbeat as they see the current consolidation as potentially the calm before a significant upward move. World of Charts posted on X that the coin might soon experience a strong bullish breakout in the coming days.
Several factors could drive Dogecoin’s price higher. Firstly, the ongoing Bitcoin rally, which has crossed the key resistance at $100,000. When Bitcoin moves above this level, there’s a good chance that many institutional investors and companies will start buying it. Historically, higher Bitcoin prices tend to generate more interest in low-priced meme coins like Dogecoin.
Secondly, the current sentiment in the crypto industry is one of extreme greed. Data indicates that the crypto fear and greed index has reached 85, in the extreme greed zone. Moreover, the altcoin season index has been on the rise, which is expected to boost demand for Dogecoin.
Lastly, the continued acquisitions by whales are also beneficial for Dogecoin’s price. Recent data from ClankApp shows that whales moved coins worth over $3 million on December 5.
Overall, based on these factors, analysts are optimistic that Dogecoin could potentially reach $1 by December 31.
Related topics:
Dogecoin ETF Speculation Amid Trump’s Crypto Agenda
Trump Appoints Musk & Ramaswamy to Lead New DOGE Department, Spark Dogecoin Rally
Dogecoin Spikes 20% Following Trump’s Appointment of Musk and Ramaswamy to New Department
