As an experienced analyst, I believe that Dogecoin’s recent price action suggests a potential rebound in the near term. After developing a local top at $0.174, the asset experienced a significant correction of 11%, seeking support at the 38.2% Fibonacci retracement level at $0.156. This level has historically provided firm horizontal support for Dogecoin, and the recent accumulation by large investors (whales) further strengthens this notion.
As a market analyst, I’ve been keeping a close eye on Dogecoin‘s price movements during this market consolidation phase. Notably, Dogecoin, the largest meme cryptocurrency by market capitalization, has formed a local top at around $0.174. Following a recent reversal from this resistance level, the asset experienced a significant drop of approximately 11%, reaching a potential support zone at the 38.2% Fibonacci retracement level, which is located at $0.156.
Key Support and Resistance Levels to Watch Amid Whale Activity
In May, Dogecoin, the Canine Meme cryptocurrency, experienced a gradual bounce-back. This recovery propelled the digital asset upward from $0.12 to a peak of $0.175, representing a substantial gain of approximately 45%.
As a crypto investor, I’ve noticed that the DOGE price has been forming higher lows recently. This is an early sign of a trend reversal, as market participants are starting to accumulate during price dips. At present, DOGE is trading at $0.161, and its market cap stands at a significant $23.3 billion.
With the Bitcoin consolidation, the DOGE price is wavering sideways seeking support at $0.156.
Additionally, famed trader Alicharts brought attention to a noteworthy occurrence in the Dogecoin sector. As of June 4, 2024, large Dogecoin holders (whales) have amassed an extra 200 million DOGE since May 30th.
#Dogecoin whales have bought an additional 200 million $DOGE since May 30!
— Ali (@ali_charts) June 4, 2024
As a researcher studying the cryptocurrency market, I’ve noticed a significant increase in large-scale acquisitions by major investors recently. historically, I’ve observed that such accumulations by “whales” – large investors with a substantial amount of crypto assets – have often signaled growing interest and confidence in the market. These actions can shape market sentiment and influence liquidity, potentially leading to price rallies.
Amidst the accumulation of whales, the DOGE price bounced back from the $0.156 support level, displaying a bullish morning star pattern. This pattern could indicate a potential rebound, boosting this meme coin and potentially initiating a 8.5% surge to confront the resistance at $0.174.
If the breakout is successful, it will boost purchasing activity and potentially reach a goal of $0.21, with further progression towards $0.228.
Technical Indicator
- Exponential Moving Average: The 50-day EMA slope wavering at $0.156 assists memecoin buyers with additional support to bolster the recovery trend.
- Relative Strength Index: The daily RSI slope wavering at 50% hints at a neutral market sentiment.
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2024-06-04 21:29