As a researcher with a background in cryptocurrency analysis, I find the current Dogecoin price trend intriguing due to its unique characteristics as a meme coin and the recent shift in its holder distribution. The Dogecoin price has been following a downward trend for months, and the latest correction brought it to multi-month lows.
As a crypto investor, I’ve noticed that the market showed less volatility on Wednesday, with Bitcoin holding steady above $65000 and forming a neutral candle. However, the early week sell-off continues to impact altcoins, including meme cryptocurrencies like Dogecoin. The volatile nature of these coins led to a significant drop in price for Dogecoin, which reached multi-month support levels. This moment is crucial for Dogecoin as it could signal either a noteworthy recovery or an extended correction period.
Dogecoin Price Analysis: Whales Reduce Holdings as Retail Investors Gain Ground
For the past three months, the price of Dogecoin has exhibited a gradual corrective action, moving between two descending trendlines. These trendlines serve as significant dynamic resistance and support levels, shaping a potential bullish continuation pattern in the form of a flag for this meme coin.
The DOGE price experienced a significant decrease, dropping from $0.228 to a 15-week low of $0.113, equating to a loss of approximately 50.4%. Currently, the price is showing signs of stabilization and hovering around $0.12. Notable technical levels supporting this trend include the 50-week moving average, 61.8% Fibonacci retracement level, and a support trendline based on the flag formation.
As a researcher studying the Dogecoin (DOGE) market, I’ve observed an increasing demand pressure at the support confluence. This trend was evident in Tuesday’s long-tail rejection candle. Currently, DOGE trades at $0.124, representing a 1.62% increase from its previous price. Additionally, the market capitalization of Dogecoin has reached an impressive $18 Billion.
If the current trend continues, the buyers may push the price up by approximately 15% and reach the trendline at $0.142. Nevertheless, a clear break above the pattern’s resistance level would provide a stronger indication of a reversal and enable the asset to advance towards $0.228.
Based on current figures from crypto analysis company IntoTheBlock, it appears that the biggest Dogecoin investors, often labeled as whales, have been gradually reducing their ownership of this cryptocurrency over the past year. Specifically, there has been a significant decrease in the proportion of Dogecoin’s total supply held by entities who own more than 0.1% each. This percentage has dropped from 45.3% to 41.3%.
Over the past year, the largest Dogecoin whales have been reducing their holdings.
As a researcher examining this data, I’ve noticed a decrease in the proportion of the total supply owned by individuals holding more than 0.1% each. Specifically, this figure has dropped from 45.3% down to 41.3%.
In contrast, retail and mid-sized investors now hold a larger share of the total supply.
— IntoTheBlock (@intotheblock) June 18, 2024
This change indicates that the ownership of Dogecoin has been reallocated, with smaller investors (retail and mid-sized) currently controlling a greater portion of the overall circulation. A higher concentration of tokens among “whales” is typically viewed as bearish for assets, potentially leading to additional price adjustments.
As a researcher observing the DOGE market trends, I would note that should the price dip beneath the lower trendline, selling momentum is likely to intensify, potentially driving the memecoin below the $0.1 threshold.
Technical Indicator
- RSI: The daily Relative Strength Index slope at 31% hovering just above the oversold region, which could attract dip buyers in the market.
EMAs: A potential bearish crossover between the 50-and-100-day Exponential Moving Average could raise selling pressure and stall DOGE reversal from $0.12 support.
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2024-06-19 15:28