Dogecoin (DOGE), the self-proclaimed “internet dog money,” has found itself caught in the crossfire of a volatile week for cryptocurrencies. Bitcoin’s recent price slump, attributed to miner sell-offs, has cast a shadow over the entire market, with DOGE feeling the heat as well.
Adding fuel to the fire, massive transfers from large wallets to exchanges like Robinhood have raised concerns about potential whale dumps. Crypto tracking platform Whale Alert’s reports on these movements have instilled fear in investors, who worry that major holders might be preparing to cash out.
This sentiment is further amplified by data from Intotheblock, a crypto analytics firm. Their findings reveal a shift in DOGE ownership, with large whales reducing their holdings over the past year. This has led to a situation where retail and mid-sized investors now hold a bigger chunk of the pie. However, historically, this group has been more prone to selling their coins rather than holding them long-term (HODLing). This short-term outlook poses a challenge for bulls hoping to see sustained growth.
Despite the prevailing bearish sentiment, there’s a glimmer of optimism from some analysts. Trader “Taldigrade” believes DOGE is forming a bullish “Ladle Pattern,” similar to what preceded the massive price surges in 2017 and 2021. If history repeats itself, DOGE could potentially reach a price target of $3, according to Taldigrade’s analysis.
Others like analyst Jake Wujastyk share this optimism, pointing to DOGE’s recent rebound from a key support level, suggesting a potential upswing. Even Arthur Hayes, co-founder of BitMEX, has expressed his intention to buy more DOGE during this consolidation phase.
Also Read: Is Dogecoin (DOGE) a Good Investment in 2024? Analysts Predict Bullish Future & $1.69 Price Target
However, amidst the bullish whispers, there are voices of caution. Trader “Cryptojack” emphasizes the importance of DOGE closing above $0.13 on the weekly chart. This would solidify the bullish momentum and avoid a potential reversal if the price fails to breach this crucial technical level.
At the time of writing, DOGE is trading at $0.1253, reflecting a slight increase in the last 24 hours. However, it remains down roughly 10% over the past week. Whether DOGE will heed the calls of the bulls or succumb to the bears’ pressure remains to be seen. Only time will tell if the “internet dog money” can overcome the current market turbulence and make its next move.
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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