DOGE Price Analysis: Whale Buying & Bullish Signals Point to Possible Rebound
- Dogecoin (DOGE) has seen strong whale activity, with 460 million DOGE purchased during the recent dip, reflecting notable investor interest.
- DOGE could experience a rebound if the price rises to $0.35, potentially triggering the liquidation of $766.45 million in short positions.
- Dogecoins MACD on the 4-hour chart is showing a bullish crossover, signaling a shift from bearish to bullish momentum.
- DOGE is following the Gaussian Channel pattern, with two potential bull runs expected.
Dogecoin (DOGE), the popular meme cryptocurrency, is currently facing turbulence in the market as it tries to maintain key support levels. Despite Bitcoins recent stabilization after a sharp crash, the broader crypto market remains in a neutral phase, leaving Dogecoin vulnerable to price fluctuations. Over the past week, DOGE has experienced a 16% drop in value, mirroring the recent markets instability.
As of today, DOGEs price stands at $0.3216, with a 24-hour trading volume of $3.97 billion and a market capitalization of $47.51 billion. The token has seen a 3.11% decrease in the last 24 hours. Despite the short-term downturn, DOGEs performance could shift as key market factors come into play.
Whale Activity Signals Potential for Rebound
Crypto analyst Ali Martinez has highlighted a significant accumulation of Dogecoin by large investors, also known as whales. Martinez revealed that these whales have bought 460 million DOGE during the recent price dip, indicating that some institutional investors view the current price levels as a buying opportunity. This buying pressure could support the price and help Dogecoin stay above critical support zones.
Additionally, Martinez pointed out that if Dogecoin rebounds to $0.35, approximately $766.45 million in short positions could be liquidated. This could cause a short squeeze, driving additional buying activity and potentially leading to a price surge.
Bullish Technical Signals for DOGE
Technical analysis is also showing some promising signs for Dogecoins future price action. Trader Tardigrade, a noted crypto analyst, highligted a potential MACD bullish crossover on the 4-hour chart. This crossover suggests that a short-term shift in momentum from bearish to bullish could be on the horizon, signaling an opportunity for traders to enter long positions as DOGE may be primed for a rally.
Moreover, Tardigrade pointed out that Dogecoin is currently following the Gaussian Channel pattern, which is considered a strong bullish signal. After exiting the channel during a red phase, DOGE retested the mid-channel line, an action often associated with the beginning of a new upward trend. According to Tardigrade, two potential bull runs could follow.
Whats Next for Dogecoin (DOGE)?
As the cryptocurrency market tries to regain stability, Dogecoins future remains uncertain but optimistic. Whale accumulation and bullish technical indicators suggest that DOGE could experience a short-term rebound if the market conditions align. Despite the current volatility, Dogecoins strong support levels and key technical signals offer hope for a price reversal.
Related Reading | VeChain (VET) Faces Bold Uncertainty, Price Could Hit $0.17 or $0.0314
Text source: TronWeekly
