Dogecoin (DOGE) has consistently gained traction among enthusiasts and investors, as one of the pioneering memecoins with its Shiba Inu mascot. Even though it started out as a whimsical, DOGE has demonstrated potential and volatility, positioning it as a notable asset in the cryptocurrency space. Recent developments suggest a possibility of Dogecoin to rally soon despite painting charts red. This article delves into the main reasons why it is believed the meme coin could experience a significant price surge soon.
1. Whale Accumulation
One of the most compelling signs pointing toward a potential Dogecoin rally is the recent activity of “whales,” or large investors. A crypto technical analyst, Ali Martinez, recently highlighted that Dogecoin whales have purchased an additional 200 million DOGE since May 30.
This significant accumulation suggests that major players are positioning themselves for a potential price increase.
Martinez emphasized the importance of patience in the crypto market, responding to concerns about the lack of immediate price movement despite this large-scale accumulation. His sentiment is echoed by many in the crypto community, emphasizing that those who wait are often rewarded.
2. Technical Indicators Suggest a Breakout
A crypto trader, Kevin, has provided further insights into the technical indicators suggesting an imminent breakout for Dogecoin. He highlighted the two-month Bollinger Bands Breakout indicator, which is signaling a major movement for the first time since November 2020.
Additionally, the approaching two-month LMACD bullish cross points to significant upcoming price action.
Kevin noted that over-trading and emotional responses often cloud judgment, and it’s crucial to consider the broader macroeconomic situation. His analysis suggests that Dogecoin is preparing for a substantial move, similar to its past performance patterns.
3. Historical Patterns
Historically, Dogecoin’s price has often experienced large increases after periods of accumulating and retracting. DOGE broke out of a descending triangle in 2017, then made a 40% retrace, before it witnessed a 900% bull run. Similarly in 2021, the value of the token skyrocketed over 12,000%, 2021 following a 50% retracement.
Right now, Dogecoin has once more surpassed a descending triangle and experienced a 50% retracement, indicating the possibility of another bullish trend approaching. If the pattern of history continues, DOGE may see a surge that has the potential to exceed the $1 mark.
4. Increased Transaction Volume
Data from IntoTheBlock shows a significant increase in Dogecoin’s large transaction volume, which surged by 35.4%. Additionally, daily active addresses increased by 1.3%, and transactions greater than $100,000 more than doubled from 141 on June 2 to 297 on June 3.
Exchange inflows also saw a substantial rise from $8.6 million to $34.2 million. These metrics indicate heightened activity and interest in Dogecoin, often a precursor to price rallies.
5. Market Sentiment and Confidence
The recent whale activity and accumulation news have sparked excitement among Dogecoin enthusiasts. While the price has seen a dip, the long-term sentiment remains positive.
Martinez’s comments about patience being rewarded highlight a long-term perspective, suggesting that the current accumulation phase may be setting the stage for a significant price surge.
Crypto market expert Crypto Tony shared that if Dogecoin reclaims the $0.175 mark, it could signal a good entry point for market participants. This viewpoint aligns with the growing market confidence and the belief that DOGE’s price could witness a rally in the coming days.
Dogecoin (DOGE) Current Price Action
Dogecoin is currently trading at $0.1588, having dropped by 2.05% in its value over the past day. This bearish trend has been consistent as demonstrated in its weekly and monthly performance, with a decrease in value of 3.50% and 6.00% respectively.
This declined has pushed down the market cap of DOGE by 2.04%, to $22.96 billion, although it has maintained its position as the 8th largest cryptocurrency, according to CoinMarketCap.
Conclusion
Dogecoin’s special place in the cryptocurrency market, along with recent large-scale buying by whales, technical indicators, historical patterns, and rising trade activity, suggests a bright outlook ahead.
Despite the high volatility of the crypto market, indications point to the possibility of Dogecoin (DOGE) starting a major rally soon. Investors should still proceed with caution and do thorough research, but indications suggest an exciting future for DOGE.
The post Top Reasons Dogecoin (DOGE) is Poised for A Rally Soon appeared first on CoinGape.
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