Dogecoin (DOGE) has recently captured the attention of traders, showcasing bullish signs on the price charts and suggesting a potential rally of around 30%. This comes in the wake of increased whale activity, particularly among smaller wallets, indicating renewed interest in the meme-inspired cryptocurrency.
Currently, DOGE’s price hovers around $0.1249, experiencing a minor change of 1% over the past week, but showing positive movement with a 2.51% rise in the last 24 hours. Its daily trading volume is approximately $2.15 billion, with a market capitalization nearing $20.99 billion.
Analyzing the technical landscape, a bullish divergence has emerged upon observing the Relative Strength Index (RSI) alongside the price action. Between mid-December and late January, the price of DOGE made lower lows while the RSI recorded higher lows. This divergence often signals a weakening of selling pressure, suggesting that buyers might be gaining traction.
A pivotal level to watch is the 20-day exponential moving average (EMA), which DOGE needs to reclaim in order to confirm a potential move towards $0.158—a gain reminiscent of the previous 35% surge following similar market conditions in early January. The last reclamation of this EMA resulted in a near 20% increase in price.
The overall market sentiment is cautiously optimistic, as technical indicators imply that if DOGE breaches this critical resistance level, it may rapidly approach the $0.158 target, yielding a 30-35% increase from current prices. However, a fall below $0.117 would nullify the bullish thesis, indicating a critical tipping point.
Support for this bullish outlook also comes from on-chain metrics, with data showing a significant decline in spent coin activity from 158 million DOGE down to roughly 41.9 million DOGE since January 26. This decrease could suggest that holders are opting to retain their positions rather than selling, contributing to diminished selling pressure.
Whale Accumulation on the Rise
Interestingly, smaller whale wallets, defined as those holding between 1 million and 10 million DOGE, have incrementally increased their holdings from 10.95 billion coins to 10.96 billion. While this uptick appears minor, it’s indicative of a trend where these investors are accumulating quietly during price stagnation, instead of chasing after significant price movements.
Moreover, derivatives data shows a greater number of short positions compared to long ones, suggesting a limited risk of short squeezes, which could further stabilize the price should an upside breakout occur.
According to analyst Javon Marks, Dogecoin is holding above a critical resistance trendline, with a long-term price target set at $0.6533, which represents over a 400% potential gain. A move past this mark could set sights on an even loftier target of $1.2511, contingent on the broader market environment.
Despite this optimistic outlook, other analysts, like KressPex, advocate for caution, suggesting that DOGE might trade in a range-driven pattern throughout the summer without a significant catalyst. Historical patterns indicate the possibility of pullbacks in the upcoming months.
The reclaiming of the 20-day EMA remains the central trigger that could unlock Dogecoin’s potential for a near-term 30% upside move toward $0.158. Traders and enthusiasts alike will be observing these developments closely as the market continues to evolve.
