Dogecoin price remains above the support trendline to form the sell climax bottom

Dogecoin’s price action in the past 24 hours has been approxmarked by a consolidation around $0.33. Notably, this perambulation around the $0.33 mark has seen Dogecoin hold above an important trendline that could make or break its trajectory from here.

Interestingly, Dogecoin is also exhibiting what looks like the formation of a climactic bottom, according to recent technical analysis of price action. This observation comes from cryptoanalyst Trader Tardigrade, who shared insights into Dogecoin’s price structure and a positive outlook for the king of meme coins.

Dogecoin is holding strong above the Support Trendline

In one recent analysis on social media platform X, Trader Tardigrade noted that Dogecoin has maintained its position above a vital support trendline. This support trendline, as shown by the price chart below, is located around $0.315 and has been a relevant area for Dogecoin since mid-December 2024. This support level occurred after Dogecoin briefly broke below the $0.27 mark on December 20 before surging upwards. As pointed out by Trader Tardigade, the subsequent structure from this break formed what was a selling climax.

However, the selling climax may not be the end of the correction. Instead, Dogecoin may still be completing a “selling climax bottom”, which is a more extended formation that sets the stage for a price correction bottom. At present, Dogecoin is retesting the support trend line at $0.315 after a recent rise to $0.39.

This retest is seen as a critical step in the wider pricing structure. According to Trader Tardigrade, the price action represents a “secondary test” (ST), a technical move that serves to confirm the validity of the selling climax bottom. By holding above this level, Dogecoin strengthens its chances of moving from the correction to an extended upward recovery.

DOGE to show signs of strength

Investors are watching closely for signs of strength in Dogecoin, and on-chain data suggests some investors perhaps already positioning itself for the last boss moves up. Trader Tardigrade echoes this sentiment, noting that Dogecoin will eventually show a sign of strength in the rise.

This increase is based on expectation of a strong rebound from the bottom of the selling climax. With regard to one price targetTrader Tardigrade expected the next move for Dogecoin to be a push towards $0.66 in the next few weeks.

Speaking of investors positioning for an upside move for Dogecoin, on-chain data from Santiment shows that Dogecoin whale addresses have bought over 470 million DOGE tokens in the last 48 hours. As such, the total holdings of these whale addresses with between 10 million and 100 million DOGE tokens now stands at 22.56 billion tokens, the highest in over 30 days.

At the time of writing, Dogecoin is trading at $0.332 and is up 0.5% in the last 24 hours.

Featured image from WSJ, chart from TradingView