Dogecoin Price Could Surge as Whales Accumulate
On-chain data compiled by Santiment reveals that DOGE whales have accumulated the token in the past few months, undeterred by the ongoing crash. The data shows that the number of DOGE coins accumulated since January 2024 to today moved from 8.85 billion to 8.99 billion, or 140 million tokens.
While the price has changed in this period, these tokens would be valued at $21.84 million. Whale accumulation is often seen as a bullish catalyst for a cryptocurrency since these investors are more sophisticated than retail traders.
More on-chain data shows that the closely-watched Mean Dollar Invested Age (MDIA) has continued rising in the last 365 days. It soared to a high of 116 on Tuesday, a big increase from 71 in December last year.
The MDIA is important data that tracks the average age of every dollar invested in a coin. A rising figure is a sign that investors are holding their investments for longer in a show of confidence.
The ongoing whale accumulation is likely because these participants see several catalysts that will push the DOGE price higher over time. One of the major catalyst will be the approval of a spot Dogecoin ETF by the Securities and Exchange Commission (SEC).
Odds of the approval of DOGE ETFs by companies like 21Shares, Bitwise, and Grayscale have jumped on Polymarket recently. That’s because DOGE is a proof-of-work cryptocurrency similar to Bitcoin and Ethereum.
DOGE Price Technicals are Highly Bullish
The other likely reason why these whales are accumulating Dogecoin is that it has highly bullish technicals. The daily chart shows that the coin has slowly formed an early bullish pattern known as a falling wedge.
This pattern, which is shown in green below, comprises of two descending and converging trendlines. A bullish breakout typically happens when these two lines near their meeting point. Dogecoin price is now at the upper side of this wedge, meaning that a bullish breakout may happen soon.
The other DOGE price forecast is that the Percentage Price Oscillator (PPO) and the Relative Strength Index (RSI) have formed a bullish divergence pattern.
A breakout will initially target the crucial resistance point at $0.2285, its highest swing on March 9, which is about 45% above the current level.
The stop-loss of this trade will be at $0.1275, the lowest swing on April 7. A drop below that level will point to more downside. The potential target is the support at $0.0930, the lowest swing in August last year. Such a move would signal a 41% below the current point.
The post Will Dogecoin Price Bounce? DOGE Whales That Sold 2021 Peak Have Scooped 140M Tokens appeared first on CoinGape.
