Dogecoin Faces Short-Term Pressure, But Whales See Potential Upside
This week, the price of Dogecoin (DOGE) has faced some challenges. The coin fell to $0.2200 on Tuesday, marking a 15% drop from its recent high. Despite this dip, ther’s optimism about a possible rebound.
Whales, which are large investors in the crypto space, are a key indicator of market direction. They’re frequently enough more skilled and experienced, making their actions noteworthy. Current data shows that Dogecoin whales are actively buying. For instance, addresses holding 1 million to 10 million DOGE now own 10.56 billion coins, up from 10.48 billion on May 10. Similarly, holders of 100 million to 1 billion DOGE have increased their holdings from 25.53 billion to 25.86 billion coins.
Santiment data suggests that these movements could signal a coming price rise. On the daily chart, DOGE has formed a bullish flag pattern, which often leads to a strong breakout. Before this, DOGE also created an inverse head and shoulders pattern.
With DOGE now above its 50-day and 100-day Exponential Moving Averages, a breakout seems likely. The next target could be the November 2024 high of $0.4820.
The weekly chart also paints a positive picture. A giant megaphone pattern is forming, with two ascending and diverging trendlines. If this pattern continues, DOGE may surpass $0.4820, with a potential push towards $1.
- Dogecoin whales are buying, signaling possible price rise.
- Bullish flag and megaphone patterns point to potential gains.
- Next price targets include $0.4820 and potentially $1.
