The cryptocurrency market has seen significant volatility, but Dogecoin whales are taking advantage of the price drop to accumulate massive amounts of DOGE. Crypto analyst Lumen has highlighted this buying trend, which could signal an upcoming bullish phase for the popular meme coin.
Dogecoin Whales Target $0.50
According to Lumen, Dogecoin whales have accumulated 1.7 billion DOGE (approximately $298 million) in just 72 hours. This accumulation comes amid a steep decline, with DOGE dropping nearly 20% in a week from $0.22 to $0.16. Analysts believe this could be an early signal of bullish sentiment ahead of a potential Dogecoin ETF approval.
Lumen further suggested that if DOGE manages to reclaim the $0.20 level before any ETF approvals, the resulting market liquidity could propel the price toward $0.50. Additionally, Tesla CEO Elon Musk, a known Dogecoin supporter, could once again influence the market with his bullish comments.
Dogecoin ETF Delayed, But Optimism Remains
The U.S. Securities and Exchange Commission (SEC) recently postponed its decision on Grayscale’s Dogecoin ETF application, indicating that immediate approval may be unlikely. Despite this, crypto analyst Ali Martinez remains optimistic, noting that investor sentiment around DOGE has hit its most negative level in over a year. Historically, extreme fear in the market has often preceded strong reversals, making this a potential opportunity for contrarian investors.
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Technical Analysis: Key Levels to Watch
Crypto analyst Kevin Capital provided insights into DOGE’s current price action, emphasizing that it is retesting the 0.5 Fibonacci level and key macro trend indicators such as the 200-week Simple Moving Average (SMA) and the Exponential Moving Average (EMA). Additionally, DOGE’s 3-day Relative Strength Index (RSI) is at historically low levels, suggesting that a reversal could be imminent if Bitcoin stabilizes and macroeconomic factors align favorably.
Meanwhile, analyst Trader Tardigrade has also presented a bullish case for Dogecoin. He noted that DOGE has formed a 5-wave Expanding Wedge pattern and is approaching a breakout on the 4-hour chart. With confirmed bullish RSI divergence, he believes DOGE is nearing a reversal, potentially setting the stage for a strong rally.
Final Thoughts
While the broader crypto market remains uncertain, Dogecoin whales continue accumulating, and technical indicators suggest a possible upward move. Investors should monitor Bitcoin’s price trends, macroeconomic conditions, and potential regulatory developments, including ETF approvals. As The Bit Journal continues to track these trends, traders will be watching for confirmation of a sustained bullish breakout.
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The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
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