The cryptocurrency market is witnessing a notable correction ahead of the U.S. presidential election of 2024. As Bitcoin price plunged below the $70,000 mark, the altcoin market is experiencing renewed selling pressure. While the Dogecoin price follows the same momentum, a renowned crypto analyst identified a possible bottom formation for most major altcoins. Currently trading at $0.15, the DOGE hovers at a crucial support zone to regain its bullish momentum for a $0.2 rally.
Dogecoin Price Targets $0.2 as Analyst Spots ‘Bottom Formation’
In a recent tweet, Italian crypto analyst Eliz shares an optimistic yet cautious outlook for the crypto market in the coming week. He believes that most major altcoins are starting to form a temporary bottom after the recent market.
However, Investors are advised to remain patient and vigilant, especially with macroeconomic factors like the upcoming election influencing market sentiment. His analysis highlights a range setup for Dogecoin price, with the potential for a robust entry point if a “mega range” solidifies.
By press time, Dogecoin had traded at $0.15, seeking support from the ascending trendline and $0.14. If the buyers manage to recuperate the exhausted bullish momentum at $0.143, the price of DOGE could initiate its next recovery leap.
The post-reversal rally could drive a rally to price to $0.02, accounting for a potential gain of 30%.
Large Holders Accumulate Aggressively as 30-Day MVRV Drops to 5.5%
According to santiment data, the large holders with wallet sizes of 10 million to 100 million coins have significantly raised their accumulation from 14.66 billion to 18.97 billion coins, reaching a 30% growth. The aggressive accumulation by large holders often indicates expectations of price appreciation, which could fuel further positive sentiment and attract additional interest from the broader market.
Historical data shows that whale accumulation has often coincided with a major market bottom and bolstered a long-term uptrend.
On the contrary, If sellers defended the $0.18-$.15 supply region, the Dogecoin price could witness a stalled rally
Frequently Asked Questions (FAQs)
Dogecoin is currently trading at $0.15 and hovering near a crucial support zone at $0.14, reinforced by a multi-month support trendline and the 20-day exponential moving average
If sellers defend the $0.18 to $0.15 supply region, the current rally could stall, preventing Dogecoin from breaking out.
The 30-day Market Value to Realized Value (MVRV) ratio has dropped to 5.5%, a sign that short-term traders are experiencing losses
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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