Key Insights and Market Performance
Dogecoin price experienced a notable decline of 8% on Monday, settling at $0.1737 and falling below the critical support level of $0.1781. Despite this recent correction, a prominent analyst suggests that this price action is a preparatory phase for a significant rally expected in November.
Futures open interest has seen a decrease over the past 24 hours. Specifically, Dogecoin (DOGE) experienced a 2% drop, Shiba Inu (SHIB) saw a 7% decrease, and PEPE declined by 8%. These reductions brought the total futures open interest values to $1.7 billion for DOGE, $77.8 million for SHIB, and $227.45 million for PEPE.
On-chain data from Santiment indicates that major Dogecoin wallets, those holding over 100 million tokens, have remained largely inactive since November 1. Concurrently, holdings among large investors in SHIB and PEPE have diminished, contributing to increased supply pressure and raising concerns about the short-term outlook for the meme coin sector.
The highly speculative nature inherent in meme coins frequently leads to sharp price fluctuations, particularly during broader market corrections. The observed exit among whale traders and holders can be attributed to this characteristic.
Dogecoin Price Prediction: Historical Patterns Hint at a November Rally
A detailed analysis of Dogecoin's historical price movements, as shared by analyst YazanXBT, reveals a consistent pattern of significant rallies occurring in November across all previous bull phases. This recurring trend suggests that the current market correction might be a precursor to an upcoming upward movement.
The weekly chart analysis highlights a recurring cycle of steady accumulation followed by explosive breakouts approximately every few years. Each of these substantial rallies has historically commenced after a consolidation phase characterized by narrowing volatility, which was then followed by a surge in trading volume.
The current price action of Dogecoin appears to mirror these earlier setups that preceded significant rallies. Key support levels observed in these past instances were situated between $0.18 and $0.25.
Further examination of Dogecoin's historical price data indicates that the next critical resistance level to watch is $1.15. This level aligns with several significant resistance zones identified along the long-term Fibonacci extension.
Should the bulls successfully confirm a sustained breakout above these identified levels, the price of Dogecoin could potentially surge to a new all-time high, reaching approximately $1.60.
From a technical perspective, historical data suggests that Dogecoin's price tends to exhibit strong upward movement in November, when analyzed against all previous Dogecoin bull cycles.
If this historical pattern continues to hold true, November could once again mark the beginning of a memorable Dogecoin price rally, potentially signaling the start of the next altcoin season.
Analysis of Dogecoin's Third Bullish Wave
An analysis by EtherNasyonal presents a clear long-term structural view of Dogecoin's price action, demarcating three distinct bullish waves since 2014. Each of these waves has followed a consistent pattern: a strong breakout, followed by a consolidation phase, and subsequently, a new upward movement within a rising channel.
Currently, Dogecoin (DOGE) appears to be entering its third bullish wave. The price is consolidating just above a crucial trendline.
Support for the price is currently found along the 25-month moving average, a level that has historically provided significant support during the previous two bull cycles. Based on this trend, the DOGE price action may be positioning itself for an extended move towards achieving a new record high.
If this established structure continues to hold, the $0.1830 level could act as a critical springboard, propelling Dogecoin to a new multi-month high.