Dogecoin (DOGE) has seen a significant price increase this month, successfully breaking through previous resistance levels. The recent upward trend is not only benefiting from a favorable market environment but also from the proactive actions of major holders. If this trend continues, the price of Dogecoin is expected to rise further.
Whales drive the price increase
Dogecoin's 'whales' (large investors) are the key driving force behind the recent price increase. Since the beginning of this month, addresses holding between 100 million and 1 billion DOGE have been continuously accumulating, holding over 2 billion DOGE in total, valued at approximately $500 million. This accumulation demonstrates the whales' strong confidence in Dogecoin's future potential, providing solid support for the price increase.
Technical indicators are improving
The overall trend of Dogecoin is shifting from bearish to bullish. Recently, the 50-day and 200-day Exponential Moving Averages (EMA) formed a 'golden cross,' marking a significant shift in market sentiment. This technical signal ends a five-month 'death cross' bear market, indicating a more optimistic future trend for Dogecoin. If this momentum can be maintained, the price is expected to continue rising.
Price trend analysis
As of now, the trading price of Dogecoin is $0.246, recently breaking through the resistance level of $0.241. To maintain its upward momentum, Dogecoin needs to convert $0.241 into a solid support level.
If this level can be maintained, the next resistance level of $0.273 will become the target. Continuous accumulation by whales may push the price towards $0.273, or even break through it. However, if bullish momentum weakens, Dogecoin could consolidate within the range of $0.241 to $0.218. If market confidence declines, it may trigger a price correction, undermining the bullish outlook.
Summary: The current rise of Dogecoin is driven by whale accumulation and improvements in technical indicators. If the bullish trend persists, the price is expected to challenge higher resistance levels; but if momentum is lacking, consolidation or a correction may occur in the short term.
