Summary:
– Despite a drop in DOGE’s value, significant accumulation by large investors, increased withdrawal from exchanges, and an almost oversold RSI suggest that the bullish trend is still in play.
– Analysts remain hopeful, with price targets set at $0.52 and a potential new all-time high of $5.
The Role of Whales and Other Positive Indicators
The leading meme cryptocurrency has seen its price fall by approximately 10% in the past day, currently priced at $0.23, according to CoinGecko. Yet, the actions of major holders indicate a potential upward trend. Well-known X user Ali Martinez disclosed that significant investors have acquired over 310 million DOGE within two days, indicating “major accumulation after a short profit-taking phase.”
The purchased DOGE is valued at about $73.5 million, with whales now owning roughly 25.42 billion tokens. This accounts for 16.6% of Dogecoin’s circulating supply, valued at over $6 billion. This accumulation reduces the number of coins available in the market, potentially sparking a price rise if demand remains constant or increases. Additionally, smaller investors might follow suit, injecting new capital into the market.
The increase in DOGE withdrawals from exchanges is another positive sign. Data from CoinGlass shows that investors have been transferring their holdings from centralized exchanges to personal custody solutions for several months, reducing immediate selling pressure.
Lastly, Dogecoin’s Relative Strength Index (RSI) is close to 30, which typically signals an oversold status and a potential trend reversal. Conversely, an RSI above 70 suggests that the price has risen too quickly, possibly leading to a short-term correction.
Predictions for DOGE’s Price
Despite the recent dip, many Dogecoin supporters are confident that the price is set to reach new highs soon. X user Galaxy believes the drop served as a retest of the recent breakout, predicting a new upward trend that could reach $0.52.
Ultimae GL predicts a “high probability” for DOGE to hit $0.35 next, provided the price maintains support at $0.21 and breaks above $0.28.
CryptoELITES argues that the meme coin’s bullish phase is far from over, projecting an ambitious target of $5 as the next all-time high.
This article originally appeared on CryptoPotato under the title “310,000,000 DOGE in 2 Days: Is Dogecoin Ready to Rally After 10% Drop?”
