#Dogecoin #DOGE #Crypto #Cryptocurrency #Blockchain #Investing #Finance #Technology
Dogecoin (DOGE), a cryptocurrency that originated from a meme, has recently shown promising signs of recovery, especially when its price reclaimed the key support level of $0.15 over the past week. The rally in the last 24 hours has further bolstered confidence in its potential for growth. Investors are on the lookout to sell for profits, but there seems to be a growing belief that DOGE has more room to grow before hitting a peak. This sentiment is echoed in the actions of Dogecoin whales—large wallet holders—who seem determined to pump the price to capitalize on its low prices.
The involvement of Dogecoin whales is a notable factor in the cryptocurrency’s recent price movements. These whales have significantly increased their holdings, adding over 500 million DOGE, equivalent to $77 million, in a single week. This surge in supply has raised their total holdings to an astounding 17.57 billion DOGE. Such aggressive accumulation suggests a strong belief among these large investors in Dogecoin’s future price surge. Despite a broader market signal indicating a sell, whales appear to be holding onto their assets (HODLing), anticipating further gains. However, network participation has seen a downturn, with active addresses sliding from 67,000 to 52,000 over the last two months, indicating a 22.3% plunge due to diminished incentives for transaction activities.
This contradiction between rising prices and declining network participation typically signals a potential sell-off. Nevertheless, the context for Dogecoin is somewhat different. Many holders may opt to wait for further increases, especially with the price trading above the crucial support level after narrowly avoiding what is known in the industry as a death cross—a bearish signal where the 200-day Exponential Moving Average (EMA) crosses above the 50-day EMA. The future for Dogecoin seems cautiously optimistic, with predictions leaning towards a continued recovery. The next milestone for DOGE is to breach and maintain a level above the $0.17 resistance. Achieving this would not only mark a monthly high but also solidify a stronger basis for investors to start booking profits. Conversely, a fall below the $0.15 support could negate these bullish prospects, hinting at a continuation of consolidation or a deeper decline, especially if the price drops below $0.14, putting the $0.12 level in play and challenging the optimistic outlook.
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