As a seasoned crypto investor with over five years of experience in this dynamic market, I find myself intrigued by the current state of Dogecoin (DOGE). Despite the recent price drop, the on-chain activity and expert analysis suggest a potentially bullish future for DOGE.
This week saw a considerable dip in Dogecoin‘s value, with prices plummeting as much as 20% at certain points. After reaching a high of $0.1321 on Saturday, it dipped to a low of $0.1026 by Tuesday. However, despite this fall, data from the blockchain and insights from experts hint at a potentially optimistic future for the well-known meme currency.
Dogecoin Price Remains Bullish
According to Santiment’s analysis, large investors, or ‘whales,’ have been actively participating in the Dogecoin network today, suggesting that they might not have exhausted all their bullish energy for the popular meme cryptocurrency. Despite a 18% drop from its peak on Saturday, the whales’ continued involvement indicates they may still be bullish on Dogecoin. Santiment reported this information.
Additionally, the analytics team pointed out an increase in Dogecoin’s network actions, emphasizing that Dogecoin has reached a 7-month peak in address usage and a 4-month peak in large transactions by ‘whales’, with retail transactions significantly rising during the recent price decline.
Over the last three days, 63,689 DOGE addresses have transferred coins which marks the largest stretch since April 2-4. Moreover, 1,203 whale transactions (>$100,000) preceded the local Dogecoin price top on September 28th. This marks the highest whale activity since May 26-28.
crypto analyst Ali Martinez pointed out the high level of activity within the Dogecoin network through X. Martinez explained: “Dogecoin’s network is witnessing a remarkable expansion! Over the past week, there has been a 72% rise in new Dogecoin addresses, and just yesterday, an additional 19,630 Dogecoin addresses were generated!
The cryptocurrency expert strengthens the positive outlook for Dogecoin by conducting a technical analysis. Notably, Martinez suggests that Dogecoin (DOGE) may be approaching a bullish crossover in the MACD (Moving Average Convergence Divergence), a possible sign of future price growth on the weekly chart. “Historically, when Dogecoin experienced a MACD bullish crossover on the weekly chart, it saw increases of around 90% and 180%. It’s plausible that another MACD bullish crossover might happen soon,” he added.
In technical analysis, a vital instrument is called the Moving Average Convergence Divergence (MACD). This tool has two components: the MACD line, which calculates the gap between a 26-period and a 12-period exponential moving average (EMA), and the signal line, which represents the 9-period EMA of the MACD line. When the MACD line moves above the signal line, it usually indicates a transition from a bearish to a bullish market trend, often understood as a recommendation to buy.
Another renowned crypto analyst, Luciano, has pointed to a breakout from a descending channel on the daily chart. He advises his 2.2 million followers on X: “DOGE has had a decent run in recent times and looks like this will continue. In my opinion dips are for buying and DOGE will have a spectacular season this cycle. DYOR – NAFA”
At press time, DOGE traded at $0.1087.
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2024-10-02 11:46