Dogecoin, the original meme coin, has been on a remarkable upward trajectory, sparking excitement in the crypto market. With its current price approaching $0.10, analysts are predicting that DOGE could be poised to reclaim the $0.15 mark, a level not seen since June. A combination of technical indicators and whale accumulation suggests that this target might be within reach, but profit-taking could hinder the rally.
Demand for Dogecoin Rises As Technical Indicators Flash Bullish Signs
The Relative Strength Index (RSI), a key momentum indicator, has been a major signal of Dogecoin’s recent demand surge. Currently sitting at 56.68, the RSI indicates that DOGE is in a moderately bullish zone. This level, while not yet in overbought territory, suggests that buying pressure is gradually outpacing selling activity, leaving more room for potential price gains. In simple terms, the current RSI level means that DOGE’s market isn’t too overheated, providing space for further upward movement.
This technical strength is further bolstered by the actions of Dogecoin’s largest holders—known as “whales.” Over the past week, on-chain data shows that addresses holding over 0.1% of DOGE’s circulating supply have increased their holdings by 39%. This significant whale accumulation highlights growing confidence in the meme coin’s future price action. Such whale moves often fuel bullish sentiment as their accumulation signals that big players anticipate further price increases.
Dogecoin Whales Help Drive Price Gains
The influence of DOGE whales cannot be understated. Over the last seven days, large holders have contributed to a 39% boost in their coin accumulation, helping propel the meme coin’s rally. As a result, Dogecoin’s supply in profit has also surged, with Santiment data showing that 70% of DOGE’s circulating supply, or 102 billion tokens, is now held in profit. For context, just four days ago, only 97 billion tokens were in profit.
This rising profit supply signals that Dogecoin’s price momentum is being sustained by both retail and institutional investors, who are likely to continue holding onto their coins in anticipation of further gains.
DOGE Price Prediction – Can $0.15 Become a Reality?
At the time of writing, Dogecoin is trading at $0.10, and its technical setup points toward more bullish action. The Moving Average Convergence Divergence (MACD) indicator is signaling a strong uptrend. The MACD line is above the signal line, indicating buying pressure that could fuel further upward movement. If demand continues to rise, DOGE could soon challenge the key resistance level of $0.15.
A successful breakout above $0.15 would likely set Dogecoin on a path toward the next psychological resistance at $0.19. However, there’s a catch. If profit-taking kicks in at current levels, DOGE could see a sharp reversal, with prices potentially falling back toward $0.08. This would invalidate the bullish scenario and introduce more volatility into the market.
Also Read: Dogecoin Gains 2% To $0.1051 – Is The $0.11 Resistance Level Next On The Horizon?
Dogecoin’s rally has been driven by a combination of rising demand, whale accumulation, and bullish technical indicators like the RSI and MACD. While the current momentum suggests that DOGE could reach $0.15, investors should be cautious of potential profit-taking, which could trigger a downtrend.
For now, Dogecoin remains one of the hottest assets to watch, with its price action reflecting both market enthusiasm and uncertainty. Whether or not it can sustain its momentum and break key resistance levels will depend on the continued support of both retail traders and whales.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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