Summary
⚈ DOGE sees strong buying pressure and whale accumulation with 600 million tokens purchased in 48 hours, hinting at a potential price breakout.
⚈ Technical indicators show bullish momentum with DOGE trading above key moving averages, though overbought RSI signals possible short-term correction.
Investor Raoul Pal has suggested that Dogecoin (DOGE) could play a key role in the financial world, citing its notable performance relative to Bitcoin (BTC).
His outlook is based on a potential bullish flag pattern in the Dogecoin/Bitcoin chart, which he believes could indicate a significant breakout. Pal speculated that if this pattern plays out, DOGE might become “the hardest currency on earth,” he said in an X post on May 11.
“I still think the most amusing outcome possible would be for DOGE to be the hardest currency on earth… this is the DOGE/BTC chart…to me it looks like a potential big flag pattern and new highs await,” he said.
His analysis of the DOGE/BTC chart, covering over a decade, identified two prominent falling wedge patterns, a formation often interpreted as bullish by technical analysts.
The first pattern, from 2014 to early 2021, preceded a breakout that propelled the meme cryptocurrency to historic highs against Bitcoin.
Now, a similar pattern appears to be unfolding again from the 2021 peak to the present, suggesting the possibility for another upward move.
While Bitcoin is traditionally seen as a possible currency due to its fixed supply and deflationary design, Pal’s assertion that Dogecoin could become “the hardest currency on earth” turns the conventional narrative on its head.
Despite DOGE’s inflationary supply model, his statement challenges traditional views of monetary value and raises questions of whether the meme coin can evolve into a legitimate store of value.
DOGE breaks out
Pal’s outlook coincides with a surge in Dogecoin buying pressure, placing it among the top-performing cryptocurrencies of the past week. The asset is attempting to retest the $0.50 resistance level, with eyes set on its all-time high of $0.73 in 2021.
At the same time, whales are showing renewed confidence in the token through sustained accumulation.
To this end, on-chain data from Santiment revealed that, as of May 10, whales purchased approximately 600 million DOGE within just 48 hours. Historically, such large-scale transactions have often preceded significant price movements.
DOGE price analysis
As of press time, Dogecoin was trading at $0.23, marking a gain of over 4% in the last 24 hours and over 40% on the weekly chart. The token has largely followed the broader cryptocurrency market.
Technically, Dogecoin looks set for further upside in the short and long term since its price sits above the 50-day and 200-day simple moving averages (SMAs).
However, the asset’s 14-day Relative Strength Index (RSI) is at 81, signaling overbought conditions that may trigger a price correction or consolidation.
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