Dogecoin (DOGE) $0.26, the grand old meme coin, has been taking a breather since its local high of approximately 48 cents in December 2024. With a fully diluted market cap of $39 billion and a daily trading volume of $1.59 billion, this large-cap meme coin is in the final stages of an ABC correction following the recent crypto market shake-up.
Dogecoin Price: A Whiff of Bullishness in the Air
From a technical analysis perspective, DOGE price has been treading in Bitcoin‘s footsteps since the re-election and inauguration of US President Donald Trump. The price of Dogecoin is also heavily influenced by Elon Musk, the tech billionaire who is an active participant in the Trump administration through the D.O.G.E program.
As Bitcoin flirts with the idea of a bullish breakout towards a new all-time high, it’s reasonable to assume that DOGE price will follow suit. In the daily time frame, the DOGE price has been retesting the lower border of a bullish pennant for the past five days.
The daily Relative Strength Index (RSI) for DOGE/USD has been lingering in the oversold territory, and the 200-day Moving Average (MA) has been acting as a strong support level. This positions Dogecoin to rally towards the upper border of the pennant formation in the coming days.
However, the short-term bullish sentiment for Dogecoin price will be dashed if the top meme coin consistently closes below the support level around $0.2277. Additionally, the weekly RSI may plummet below the 50% level, triggering a wave of liquidations.
🐶#Dogecoin’s current Pullback mirrors the 2017 price structure 💥There’s a strong chance that $DOGE has hit a local bottom and could soon reach new ATHs 🌕
— Trader Tardigrade (@TATrader_Alan) February 6, 2025
DOGE Whales: A Tale of Greed and Accumulation
The demand for meme coins has skyrocketed over the past year, driven by the growing adoption of cryptocurrencies by institutional investors. The strategic launch of Official Trump (TRUMP) by US President Trump, now valued at $3.7 billion with a daily trading volume of $2.4 billion, has significantly altered the memecoin landscape.
With the impending crypto regulatory clarity in the United States, whale investors have been scooping up promising altcoins while short-term traders throw in the towel.
According to on-chain data from Santiment, Dogecoin whales, holding between 10 million and 100 million DOGE coins, have accumulated over 750 million coins during the ongoing market correction. These whales now hold more than 23 billion DOGE coins, bolstering confidence in the dog-themed memecoin.
Meanwhile, Dogecoin Futures Open Interest (OI) has been steadily increasing, now hovering around $2.42 billion.
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2025-02-06 15:37