Dogecoin Price Forecast: Is this Unusual $25M Signal Bullish?

FXEmpire.com -

Dogecoin (DOGE) price is battling to defend the $0.08 territory after dipping 10% within the daily time frame on Feb 21. On-chain data shows that whale investors have are still buyingm illions of dollars worth of DOGE despite the price downtr

Can bullish the Dogecoin whales maintain the buying trend long enough to stage a decisive price rebound toward $0.10. 

Dogecoin Price Dips 10% Amid Memecoin Market Downturn  

The crypto market suffered a significant downturn on Feb 21. Interestingly,  mega cap meme coins like Shiba Inu (SHIB) and PEPE and BONK all suffered double-digit pullback.

Dogecoin (DOGE) Price Action February 2024 | Source: TradingView

Seemingly inevitably, DOGE price has suffered its own fairs share of downtrend, recording a 10% deficit within the daily timeframe.

Dogecoin Whales Continue on a $25 million Buying Spree

But interestingly, on-chain data shows that a group of strategic whale investors have continued buying the dip rather than join the ongoing market sell-off. 

Dogecoin (DOGE) Whales Wallet Balances vs. Price | Source: Santiment

The Santiment chart above depicts real-time changes in the balance of whale wallets holding at least 10 million DOGE (~$800,000). 

The red trendline shows that the highlighted whale wallets held a cumulative balance of 15.03 billion DOGE as of Feb 12. But at press time on Feb 21, their balance have skyrocketed to 15.34 billion DOGE. 

This implies that crypto whales have acquired 340 million DOGE worth approximately $25.8 million within the last 10 trading days dating back Feb 21.

In an unusual trend, as the memecoin market downturn set-in on Wednesday, rather than join the sell-off the whales have held their positions. 

If the whales opt to capitalize on the pull-back to buy the dip, its only a matter of time before DOGE price enters a rebound toward $0.10.

Dogecoin Price Forecast: $0.089 is the Key Resistance to Beat

Drawing inferences from on-chain data analysis, Dogecoin whales buying spree could set DOGE price back on the front foot, possibly retesting the $0.01 area in the coming days.

However, the Bollinger band technical indicator suggests that the bulls now face major resistance around $0.089. 

At press time, Dogecoin is currently trading at $0.083, just above the 20-day SMA of $0.082 signaling that the bulls are still in control.

A decisive breakout above the $0.089 sell-wall mounted at the upper Bollinger Band of $0.089 could trigger a major bullish upswing toward $0.1 as predicted. 

Dogecoin (DOGE) Price Forecast | Source: TradingView

Still, there’s a chance the bears could negate this narrative if the DOGE price loses the $0.07 support for the first time in 2024. However, as depicted by the lower Bollinger band, the support buy-wall at $0.074 could pose a significant challenge in that scenario.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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