Crypto analyst Akash Girimath notes that the price of Dogecoin (DOGE) is moving sideways after a breakout from the descending triangle pattern. According to the analyst, a possible 400% move to $1.8 will face hurdles up to $0.35 and beyond that the DOGE will rise rapidly. His analyst says on-chain metrics point to an increase in large transactions and a paradigm shift in the nature of their owners. Cryptocoin. com we have compiled Akash Girimath’s detailed analysis for our readers.
Analyst: Dogecoin price at “make or leave” levels
According to the analyst, the Dogecoin price is at a crucial tipping point in its evolution with the potential to trigger massive volatility, and with it, there are hurdles that will make it difficult to reach its intended target, which is an all-time high. Akash Girimath provides the following analysis:
Dogecoin price has identified three lower highs and two higher lows, which when tied using trendlines, reveal a descending triangle. This technical formation shows that the distance between the initial high and low swing will reach $1.09, a 361% increase achieved by adding the $0.24 breakout point.
Analyst recalls that DOGE broke the hypotenuse of the triangle at $0.24 on October 18, and since that point, the meme-coin has struggled to rise, but has failed. The analyst states that the Dogecoin price has moved sideways, retesting the $0.193 support level three times since August 3, and revisited it on November 26, lastly, which is a bullish technical formation that predicts a trend reversal. states that it has created a touch installation. Akash Girimath predicts:
However, if the buying pressure builds, it will force Dogecoin price to break above the $0.29 level and if it reaches $0.35 and produces a daily close above it, it will trigger an uptrend. In this scenario, market makers will gather the sell-sttop liquidity standing above $0.35 and this development will allow DOGE to form a platform for the next increase at $0.44.
Removing this hurdle will pave the way for Dogecoin price to retest the current all-time high at $0.74, and DOGE could extend the bull rally to its intended target of $1.09. Due to the recent drop, this rise represents a 400% gain from the current position at $0.22.
On-chain metrics predicts a bright future, according to analyst
Large transactions follow transfers of $100,000 or more. An increase in this metric acts as a proxy for institutions and investment theses. In the last six months, the number of such transactions increased by 70.7% from 1,570 to 2,680. The analyst states that this increase in the metric indicates that high-net-worth investors are starting to show interest in DOGE at current price levels.
The metric above gives an idea of potential investments, while IntoTheBlock’s Global Money In/Exit (GIOM) model shows where key blockades are. According to the analyst, this fundamental index reveals that DOGE will face significant challenges, ranging from $0.30 to $0.34. The analyst states that approximately 500,000 addresses that bought 47 billion DOGE are likely to sell at par by increasing the “Out of the Money” and sales pressure, and adds the following assessment:
However, if buyers overcome this increase in selling momentum and produce a daily close above $0.35, it will clear the aforementioned daily demand. This move will also pave the way for market makers to gather liquidity.
As a result, the analyst thinks this on-chain metric also encourages a bullish idea for DOGE, with the possibility that bullish momentum will push the meme-coin above $0.35.
The on-chain metrics described above serve as a backwind for the bullish thesis, while new addresses joining the network add a dent to it. This metric shows that new users joining the Dogecoin network in the past six months have dropped 34.7% from 34,320 to 22,380. Here is the analyst’s comment:
This decrease indicates that the majority of investors are not yet interested in DOGE, despite the capital inflows observed in the large trading metric. Therefore, this difference between the new addresses and the large transaction table causes instability.
According to the analyst, the discrepancy noticed above can be explained in the holder table, which represents a paradigm shift. In November 2020, the composition of DOGE investors was 74.2% holders (1+ years), 18.6% Cruisers (1 month to 1 year) and 7.2% traders (less than one month). As of November 2021, this composition has changed, showing that cruisers currently dominate with 50.7% stake, while holders have dropped to 42.1%. The analyst’s assessment is as follows:
This massive decline in long-term stockholders indicates that these investors have dispersed their holdings over the past year, meaning increased selling pressure, giving confidence in DOGE’s lackluster performance over the period.
In summary, the analyst thinks that if long-term holders stop draining DOGE holdings, investors can expect the Dogecoin price to start inflating.
On the other hand, if the selling pressure builds up and pushes Dogecoin price below the $0.193 support level, it will lead to a retest of the bottom of the descending triangle at $0.16. Akash Girimath highlights the following levels:
If the bears produce a daily candlestick below this important barrier, it will open DOGE with a massive 45% drop to $0.09 and a potential pitstop to $0.12.