Dogecoin price is stuck at a crucial resistance level and has formed a popular bullish pattern, signaling a potential breakout soon. A potential catalyst for the rebound is the fact that on-chain data points to whale accumulation. This article explores whether the DOGE price will rebound and the potential targets.
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.
Frequently Asked Questions (FAQs)
The DOGE price has a bullish outlook as whales continue accumulating the token this year, a sign that they expect it to rebound.
The most bullish technicals for this pattern is known a falling wedge pattern and a bullish divergence.
The most likely scenario is where the Dogecoin price rises to the key resistance at $0.2284, the highest swing in March last year.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
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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