Key Insights:
- Dogecoin price fell 8% on Monday to $0.1737, slipping below the key support level of $0.1781.
- Recent correction is Dogecoin price preparation to rally in November, says analyst.
- Futures open interest dropped over the past 24 hours, with DOGE down by 2%, 7% for SHIB, and 8% for PEPE
Dogecoin price fell 8% on Monday to $0.1737, slipping below the key support level of $0.1781. However, a top analyst views the correction as Dogecoin’s way to prepare for a November rally.
According to YazanXBT, the meme coin has historically rallied to record highs in November in all its previous bull phases.
Nevertheless, the recent drop was caused by smart money wallets offloading their positions amid a substantial exodus among long-term holders.
The highly speculative nature of meme coins often triggers sharp swings, particularly during overall market corrections. As such, the exit among whale traders and holders can be attributed to this.
According to CoinGlass, futures open interest dropped over the past 24 hours, with DOGE down by 2%, 7% for SHIB, and 8% for PEPE, which brought the total values to $1.7 billion, $77.8 million, and $227.45 million, respectively.
On-chain data from Santiment shows major Dogecoin wallets holding over 100 million tokens have stayed largely inactive since November 1.
Meanwhile, holdings of SHIB and PEPE among large investors have declined, adding to the supply pressure and deepening concerns about the sector’s short-term outlook.
Dogecoin Price Prediction: Fractal Hints at DOGE Rally to $2
November has consistently been a powerful month for Dogecoin price rallies, as per a DOGE bull fractal chart shared by YazanXBT.
The pattern repeated itself in 2015, 2017, 2020, and 2022. In each cycle, November was the start of a massive DOGE breakout.
The weekly chart shows a wave of steady accumulation and explosive breakouts roughly every few years. Each rally began after a consolidation phase where volatility narrowed before volume surged.
The current Dogecoin price action mirrors the earlier setups that preceded rallies with key support levels between $0.18 and $0.25.
Zooming into the history of DOGE price, the next critical level is $1.15 and it aligns with several key resistance zones along the long-term Fibonacci extension.
If bulls confirm a sustained breakout above these levels, the price of the memecoin could skyrocket to a new all-time high of $1.60.
Technically, the price of the meme coin tends to rally in November when judged against all previous Dogecoin bull cycles.
If the pattern holds true, this month could once again mark the start of another memorable Dogecoin price rally and possibly the opening chapter of the next altseason.
3rd Bullish Wave Coming Soon for DOGE Price
EtherNasyonal shows a clear long-term structure in the Dogecoin price action, marked by three distinct bull waves since 2014.
Each wave has followed a similar pattern characterized by a strong breakout, a consolidation phase, and then a new leg higher within a rising channel.
Dogecoin (DOGE) price now appears to be entering its third bull wave, with the price consolidating just above a crucial trendline.
Support currently lies along the 25-month moving average just like in the previous two bull cycles. As such, the DOGE price action could be preparing for an extended move towards a new record high.
If the structure holds, the $0.1830 level could serve as a springboard that launches Dogecoin to a new multi-month high.