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Can Dogecoin Price Recover from October Dip as Whales Step In?
Since Wednesday, crypto whales have purchased about 1 billion Dogecoin (DOGE), suggesting that these investors could save the meme coin from a poor start to a historically bullish October. On Sunday, Dogecoin’s price was $0.13, but today, it is down to $0.10.
From the look of things, this substantial buy-in could provide DOGE with the support it needs to erase the recent losses. But is this accumulation enough to change the course for the meme coin?
Whales Buy the Dogecoin Dip, Investors HODL
According to Santiment, the number of coins owned by addresses holding 100 million to 1 billion DOGE was 29.88 billion on October 2. As of this writing, that figure has increased to 30.88 billion. This means that crypto whales purchased 1 billion within the last two days.
At its current price, these coins are worth about $100 million. Typically, when whales purchase large amounts of coins like this, the cryptocurrency involved becomes more attractive to investors.
This encourages more market participants to buy and eventually drives prices higher. For DOGE, it appears that these whales are taking advantage of the recent discount and buying the dip.
If this trend continues, Dogecoin’s price could experience significant appreciation in the coming weeks. Additionally, the cryptocurrency’s Coin Holding Time has surged during the same period in which crypto whales increased their holdings.
Interestingly, Juan Pellicer, Senior Researcher at IntoTheBlock, also believes that the move could be vital to DOGE’s price rebound.
“This uptick in accumulation coincides with growing positive sentiment in the memecoin space, with notable figures like Arthur Hayes sharing their bullish outlook on memecoins. Also, the fact that whales are steadily increasing their holdings suggests growing trust in Dogecoin’s potential, which could be a sign of further price gains ahead,” Pellicer told BeInCrypto
Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know
Coins Holding Time refers to the duration a cryptocurrency is held without being sold or transacted. A decrease typically signals high selling pressure. However, in Dogecoin’s case, the holding time has jumped by 536% in the past seven days, suggesting that investors are HODLing and patiently awaiting potential gains.
DOGE Price Prediction: Breakout Incoming
On the daily chart, Dogecoin’s price is seeking to break out of the falling wedge. This technical pattern is formed by two descending trendlines. It is categorized as a bullish reversal because it appears when a cryptocurrency has made its final downward move, and buyers take advantage of sellers’ exhaustion.
With DOGE at $0.10, this move suggests that the coin might no longer experience a significant downturn in the short term. Also, the Relative Strength Index (RSI) measures momentum and gears up for a break above resistance.
Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season
If validated, Dogecoin’s price could surpass the $0.11 overhead resistance and potentially climb to $0.17 within a few weeks. However, if it faces rejection at $0.11, this forecast may be invalidated, and Dogecoin could drop to $0.092.
Disclaimer
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