As a seasoned crypto investor with a knack for spotting trends and a keen eye for potential opportunities, I can confidently say that Dogecoin (DOGE) is shaping up to be a solid investment choice in the near future. Having closely followed its trajectory since its inception, I’ve seen the meme coin ride the waves of both bull and bear markets, but it’s the resilience and adaptability that have always caught my attention.
Referring to the oldest and well-known meme cryptocurrency backed by tech billionaire Elon Musk, Dogecoin, has shown signs of an imminent parabolic surge. This large-cap meme coin, established via the legendary Proof-of-Work (PoW) consensus mechanism, bounced back from a significant support level in recent times.
Regardless of dropping by more than 7% in the last week, Dogecoin’s price has recovered in the past three days, bouncing back from its 50-day Moving Average (MA). Moreover, this popular meme coin, boasting a market cap of approximately $16.2 billion and an average daily trading volume of around $800 million, managed to verify a bullish breakout from a daily downward logarithmic trend by conducting a test on it.
As per well-known crypto analyst Ali Martinez’s analysis, the price of Dogecoin seems to be mirroring a pattern from past bullish trends. For the dog-themed meme coin to avoid a possible short-term pullback, it needs to regularly close above its 50 and 200 weekly Moving Averages (MAs).
Dogecoin Price to Lead in the Upcoming Altseason
Looking at the broader picture, Bitcoin‘s price has significantly surpassed most altcoins, as many altcoin pairs continue to test their bear market lows. Notably, the Dogecoin/Bitcoin pair has formed a weekly double bottom and exhibits a bullish divergence on the Relative Strength Index (RSI), which is often associated with a reversal in trend.
If the Dogecoin-to-Bitcoin (DOGE/BTC) exchange rate recovers before the second Federal Reserve interest rate reduction and the U.S. general election, it’s likely that the US Dollar derivative pair will also recover during the following months.
Significantly, Bitcoin’s influence over the market is shaping a large-scale reversal trend, which includes an upward sloping triangle (rising wedge) along with bearish discrepancy in the Relative Strength Index (RSI) on the weekly chart.
Given that the altcoin’s market value appears optimistic in the short term, it seems reasonable to predict that the price of Dogecoin will climb back up to its record peak fairly quickly.
Alts cap is now rebounding after the retest
Expansion is now the next phase.
— Mikybull 🐂Crypto (@MikybullCrypto) October 7, 2024
DOGE Whales on the Move
Based on insights from IntoTheBlock’s on-chain analysis, it appears that significant Dogecoin investors bought approximately 2.07 billion DOGE units, totaling more than 220 million USD, within the last week.
Last week saw a significant accumulation of Dogecoin worth approximately 2.07 billion DOGE by major Dogecoin holders – the largest such accumulation since the beginning of this year in January!
— IntoTheBlock (@intotheblock) October 7, 2024
It appears that an increase in significant Dogecoin holders, or ‘whales’, aligns with Elon Musk’s increased political involvement. Musk has been encouraging the more than 50 million American voters who are also crypto investors to support the Republican presidential nominee, Donald Trump.
Support for Donald Trump’s potential victory in the 2024 presidential elections could significantly boost the crypto market, particularly Dogecoin. This is because many American investors see a Trump win as favorable for Dogecoin. Elon Musk, who has shown interest in Dogecoin and often refers to its mascot as the “meme lord,” has hinted at accepting Dogecoin as payment for his products, such as Tesla’s unicorn-themed merchandise.
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2024-10-07 17:39