Dogecoin price has moved into a consolidation phase near the year-to-date high of $0.4795.
Dogecoin (DOGE), the largest meme coin based on market capitalization, was trading at the psychological level of $0.4500 on Dec. 5. It has jumped by 450% from its lowest level this year, bringing its market cap to over $65 billion.
Analysts are optimistic that the ongoing consolidation could be the calm before the storm before the coin jumps to $1. In an X post, World of Charts noted that the coin may soon have a strong bullish breakout in the next few days.
A likely catalyst for the DOGE price will be the ongoing Bitcoin (BTC) rally now that it has crossed the key resistance at $100,000. By moving above that level, there are odds that many institutional investors and companies will start buying the coin. Higher BTC prices often lead to more interest in low-priced meme coins.
Dogecoin price may also soar because of the ongoing sense of greed in the crypto industry. Data shows that the crypto fear and greed index has jumped to the extreme greed zone of 85. Also, the altcoin season index has continued rising, which will spur more demand for the coin.
Dogecoin price will also benefit from the ongoing acquisitions by whales. Recent data shows that some whales have continued to accumulate the coin. Data by ClankApp shows that whales moved coins worth over $3 million on Dec. 5.
Dogecoin price chart points to more gains
The weekly chart shows that DOGE has already crossed the important resistance level at $0.2265, its highest level on March 25. It has moved above the 50-week and 200-week moving averages. Dogecoin is also approaching the 38.2% Fibonacci Retracement level.
However, the coin is forming a small rising wedge chart pattern, a potentially dangerous pattern. Therefore, there is a risk that it will drop and potentially retest the support at $0.40 and then resume the bullish trend.
More gains will be confirmed if bulls move above the year-to-date high of $0.4795. If this happens, the coin may jump to an all-time high of $0.7363 by December 31. Such a move would signal a 65% upside from the current level. Investors would then eye a move to the coveted $1 level in this bull run.
A move below the key support at $0.35 will invalidate the bullish view and put it at risk of falling to $0.2265, the highest point in April this year.
