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Why Dogecoin Whales Are the Key to DOGE’s Potential $1 Run
Between November 20 and 23, Dogecoin (DOGE) whales reduced their holdings — the same week the cryptocurrency reached a yearly high. This decrease in exposure caused DOGE’s price to dip to $0.36.
However, that is no longer the situation today, as these key stakeholders have resumed buying. Here is how this could affect Dogecoin’s value going forward.
Big Wigs Won’t Let Dogecoin Go Without Buying
According to Santiment, the balance of addresses holding between 1 million and 10 million DOGE dropped to 10.39 billion on November 23 but has since risen to 10.59 billion.
This indicates that Dogecoin whales took advantage of the weekend dip, accumulating approximately 200 million coins. At DOGE’s current price of $0.42, this equates to $84 million worth of purchases. Such whale accumulation often indicates a reduction in selling pressure.
Consequently, this surge in buying activity suggests that Dogecoin’s price could be gearing up for a climb beyond its current $0.42 level. Should that be the case, then the prediction that the meme coin could hit $1 might come to pass.
Additionally, the Average Directional Index (ADX) has been climbing steadily. The ADX is a technical analysis tool that helps traders evaluate the strength of a trend, whether bullish or bearish.
When the ADX exceeds 25, it signals strong directional momentum. Conversely, a reading below 25 suggests weak movement. On Dogecoin’s daily chart, the ADX has surged to 68.00, indicating a significant uptrend. With the coin trending higher, this suggests that DOGE’s price could continue to rise.
DOGE Price Prediction: $1 Still Feasible
A further look at the daily chart shows that Dogecoin’s price experienced resistance at $0.43. This decline was one reason the cryptocurrency failed to rally to $0.50. It is also important to mention that trading volume dropped, making it challenging for the uptrend to continue.
Meanwhile, it appears that bulls are defending the $0.36 region. If sustained, then DOGE’s value could climb towards $0.48. In a highly bullish scenario, the meme coin could rally toward the $1 mark.
However, if DOGE whales decide to sell, this might not happen. Instead, the coin might decline to $0.32.
Disclaimer
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