Cryptocurrency analyst Lumen revealed a clear accumulation trend among Dogecoin whales, which provides a bullish outlook for Dogecoin's price. The analyst also mentioned factors that could drive the meme coin's price up to $0.5, marking a bullish reversal for Dogecoin.
Dogecoin whales are accumulating, and the price is expected to rise to $0.5
Lumen posted on X (formerly Twitter) revealing that Dogecoin (DOGE) whales accumulated 1.7 billion DOGE (approximately $298 million) within just 72 hours. He pointed out that this large-scale accumulation occurred just before the potential approval of the Dogecoin ETF, indicating that bullish sentiment in the market for DOGE is heating up. Notably, this action by the whales comes at a time when Dogecoin's price has significantly declined, dropping from around $0.22 to $0.16 within a week, a decrease of 20%.
Lumen also made predictions about the future price of Dogecoin. He stated that if DOGE can regain the $0.2 level before the ETF is approved, then with the liquidity increase brought by the ETF, Dogecoin is expected to rebound to $0.5. Furthermore, he mentioned that the world's richest man Elon Musk may continue to post bullish tweets related to DOGE as he has in the past, further boosting market sentiment.
However, the U.S. Securities and Exchange Commission (SEC) recently delayed the approval process for the Grayscale Dogecoin ETF, meaning that the approval of the DOGE ETF may be difficult to achieve in the short term. Despite this, cryptocurrency analyst Ali Martinez believes that DOGE may soon experience a rebound. He pointed out that current investor sentiment towards Dogecoin is at its lowest point in over a year, and historical data shows that such extreme pessimism often lays the groundwork for market reversals. Therefore, Martinez believes this could be an excellent opportunity for a contrarian investment.
Overall, despite the unclear prospects for the approval of the DOGE ETF in the short term, the accumulation by whales, potential positive news, and the extreme pessimism in market sentiment all provide possibilities for a future rebound in Dogecoin.
The Current Status of DOGE
Cryptocurrency analyst Kevin Capital conducted an in-depth analysis of the current price trend of Dogecoin (DOGE). He pointed out that DOGE has backtested the macro 0.5 Fibonacci level, while also testing macro trend lines including the 200-week simple moving average (SMA) and exponential moving average (EMA). In addition, Dogecoin's 3-day relative strength index (RSI) is currently at a historical low, which may indicate an oversold condition.
Kevin Capital stated that if Bitcoin's price remains stable and macroeconomic data and monetary policy show positive adjustments, then this may be the last chance to buy Dogecoin at a relatively low price. He added that although there are still many uncertainties in the market, the investment opportunity at current levels is 'excellent' from a risk-reward perspective.
Another cryptocurrency analyst, Trader Tardigrade, also provided a bullish outlook for Dogecoin. He noted that DOGE is forming a 5-wave ascending expanding wedge pattern and is nearing a breakout point on the 4-hour chart. Additionally, the RSI indicator shows bullish divergence, indicating that the price may soon reverse and begin a rebound.
According to data from CoinMarketCap, as of the time of writing, Dogecoin's price is approximately $0.16, having risen over 2% in the past 24 hours. Despite significant market volatility in the short term, analysts' bullish views provide a degree of optimism for DOGE's future trend.
