Dogecoin Might Rise Over 20% in Price Shortly if Bullish Scenario Plays Out

Both bulls and bears alike are currently watching Dogecoin as it's the price is floating around a crucial demand barrier. If Dogecoin breaks out, a massive crash could be the result, however, there's a pattern suggesting that Dogecoin might swing up by around 20%. 

Yesterday Dogecoin (DOGE) lost 14% in value, following Bitcoin and other altcoins across the board. As the Dogecoin correction is slowly unfolding, we notice a bullish fractal on the charts, similar to the one spotted during the December 3 decline of the coin. 

This so-called fractal shows us a triple bottom pattern including a dip below the current setup, which could be an indicator of an interesting point of liquidity influx. The last time we had seen such a setup occur was just after Elon Musk's tweet about the dog-themed coin being more useful for payments compared to Bitcoin. 

If the same happens as back on December 3rd, Dogecoin will go up in price and retest its immediate resistance barrier at $0,176. This would mean around 14% gains from current price levels. If Dogecoin manages to find support at this level, it would allow Doge to retest its 50-day Simple Moving Average at $0,187 not long after. Altogether this would mean a rise in the price of more than 20%.

However, yesterday all cryptocurrencies took a huge blow as Bitcoin dropped more than 7%, dragging other digital currencies with it. Doge wasn't an exception and also dropped in value. 

EverGrow was up over 150% over the past 7 days period. EverGrow recently passed the 125K holders mark and was trading at a $700M marketcap which is quite remarkable for crypto that was launched just 3 months ago. At the time of writing, EverGrow contracts have distributed more than $31 Million BUSD in rewards. EverGrow launched with a unique smart contract that distributes 8% of every transaction among its holders. According to the website, EverGrow will launch a suite of utilities in Q1, 2022 which includes NFT lending and marketplace, Content subscription Marketplace, and Chainlink-based play-to-earn game. 

As the crypto market is dominated by Bitcoin, and generally follows the trend which Bitcoin goes through. Doge will probably follow what Bitcoin is doing, which could mean the downswing continues. If this happens, Doge could drop even further, creating a four-hour candlestick around $0,151. If this is the way the scenario unfolds, it will create an even lower low for Doge and Doge will likely revisit its December 4 low at $0,129. 

As for on-chain metrics, we don't see too many interesting things at the moment. 52% of holders are making money at the current price and 61% of all Dogecoin holders can be labeled large holders. From these holders, 41% tend to hold on to their tokens for longer than a year, indicating that they are probably going to hold on to their Doge even through a decline like this. In fact, they might even scoop some Dogecoin up at discount prices to add to their already very large bags.

Overall, things are looking interesting on Dogecoin's charts, as there is currently potential for both bulls and bears alike. We expect a lot of volatility on the coin in the upcoming trading sessions.