Between November 20 and 23, Dogecoin (DOGE) whales reduced their holdings – the same week the cryptocurrency hit a yearly high. This decrease in exposure caused the price of DOGE to drop to $0.36.
However, this is no longer the case today, since these key players have started buying again. Here’s how this could affect the value of Dogecoin in the future.
Big wigs won’t let go of Dogecoin without buying
According to Santiment, the balance of addresses holding between 1 million and 10 million DOGE fell to 10.39 billion on November 23 but has since climbed back to 10.59 billion.
This indicates that Dogecoin whales have taken enjoy the weekend dipaccumulating around 200 million coins. At DOGE’s current price of $0.42, this equates to $84 million in purchases. Such whale accumulation often indicates a reduction in selling pressure.
Therefore, this surge in purchasing activity suggests that Dogecoin price could rise for a rise beyond its current level of $0.42. If this were the case, the prediction that the meme coin could reach $1 could come true.
Additionally, the Average Directional Index (ADX) is steadily increasing. The ADX is a technical analysis tool that helps traders assess the strength of a trend, whether bullish or bearish.
When ADX rises above 25, it signals strong directional momentum. Conversely, a value below 25 suggests little movement. On the daily chart of Dogecoin, the ADX surged to 68.00, indicating a significant uptrend. With the coin trending upward, this suggests that DOGE price could continue get up.
DOGE Price Prediction: $1 Still Achievable
A closer look at the daily chart shows that Dogecoin price saw resistance at $0.43. This decline was one of the reasons cryptocurrency failed to recover at $0.50. It is also important to mention that trading volume has fallen, making it difficult to continue the uptrend.
Meanwhile, it appears that the bulls are defending the $0.36 region. If supported, then DOGE value could climb around $0.48. In a very bullish scenario, the meme coin could bounce towards the $1 mark.
However, if DOGE whales decide to sell, this might not happen. Instead, the coin could drop to $0.32.
Disclaimer
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