After an 1,100% surge at the end of January, Dogecoin has entered a consolidation phase. But despite the growth, there appears to still be room for growth.
CEO of Factor LLC Peter Brandt recently spoke on Dogecoin’s price action. While he believes Bitcoin and Ethereum are the only cryptocurrencies with actual utility. He does see a potential profit opportunity for DOGE in the near future.
Brandt noted that Dogecoin’s price appears to be developing a cup and handle on its 4-hour chart. Which indicates a bullish continuation pattern and is mostly used by traders to enter long positions. This pattern is currently being created after DOGE was rejected by the $0.082 resistance level.
A spike in buying pressure around the current price levels could see DOGE retest the overhead barrier and cut through it. If that were to happen, the cup and handle formation forecasts a 75% target that might take it to $0.144.
Despite the potential optimism IntoTheBlock’s In/Out of the Money Around Price model reveals that Dogecoin sits underneath a massive supply barrier. As such, further price appreciation may prove challenging unless the Dogecoin can close above this price range.
Major Concerns Still Remain For DOGE
There still remains some major concerns for Dogecoin overall. The top 100 addresses of Dogecoin hold 68.1% of the total supply. Opposed to Bitcoin where the top 100 addresses hold just 13.7%. Additionally, DOGE’s supply was initially supposed to be $100 billion, but was updated to an unlimited supply later.
The upside to this is that Dogecoin’s price remains stable, but the downside is that the price should remain low. Another concern over DOGE is its volatility. As any crypto whose price can be manipulated by tweets likely won’t be considered dependable.
As it currently stands, Dogecoin is a top-15 asset with a market cap of $6.77 billion.