Dogecoin Price as Whales Buy 1.5B DOGE after Musk & Trump’s Tweet

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As a seasoned cryptocurrency researcher with over a decade of experience in the industry, I’ve seen my fair share of market fluctuations and hype cycles. The recent events surrounding Dogecoin have certainly caught my attention, especially given Elon Musk’s influence on the market.

The Dogecoin price has burst free from an important bullish reversal pattern, yet it encounters resistance approximately at $0.15. Overcoming this hurdle is vital for the asset’s upward momentum toward $0.25. At present, there is speculation about whether Elon Musk’s enthusiasm for Dogecoin, as hinted in his tweet featuring a poster with him and Donald Trump, could drive the price to fresh yearly highs.

Donald Trump Retweets Elon Musk’s Post, Dogecoin Price Drops 4%

As an analyst, I observed on September 28 that Elon Musk posted a tweet featuring himself and Donald Trump, hinting at his potential involvement with the Department of Government Efficiency (D.O.G.E) he mentioned several months ago. Accompanying this post was a Shiba Inu dog image, symbolizing Dogecoin cryptocurrency. Trump then reposted Musk’s tweet, fueling optimism in the DOGE community. Consequently, the value of DOGE increased by 3.68% before experiencing a correction on September 29.

— Elon Musk (@elonmusk) September 28, 2024

 

Currently, there’s been a report stating that a whale allegedly bought approximately 1.4 billion DOGE, valued at around $176 million. This news has sparked interest as Dogecoin creator Billy Markus (also known as Shibetoshi Nakamoto) responded to the post, raising questions about whether this purchase could have instigated the surge in DOGE prices on September 27.

The DOGE price has dropped by 4% in the last 24 hours and is trading at $0.1217.

DOGE Price Drop as Traders Book Profits

Examining trader activity indicates that Dogecoin’s price is likely to decrease temporarily, as traders take advantage of the 24% profits made over the past three days and exit their positions. By analyzing the Coinglass crypto derivative visual screener (CDVS), it appears that traders are liquidating their long positions at a loss. Typically, when this happens, they shift to opening short positions.

However, the Coinglass DOGE liquidation map tells a different story. While there is indeed some selling pressure on the daily timeframe, traders remain overall bullish on Dogecoin on the weekly and monthly timeframes. There are approximately $69 million worth of DOGE Longs, against $55 million in Shorts.

Further examination of the liquidation chart reveals a more substantial backing between 0.1068 and 0.1200, with the heaviest concentrated long-leverage positions found at 0.1180 and 0.1100.

Examining the technical breakdown suggests that traders remain optimistic about Dogecoin’s long-term price increase.

DOGE Price Could Rise By 94% After This Happens

It appears that traders are confident that the value of Dogecoin could increase significantly following its breakout from a seven-month-long falling wedge, a bullish reversal pattern. This extended period of consolidation often leads to a strong upward momentum.

Beyond this point, Dogecoin’s price has surpassed a mini double bottom formation but is currently pulling back before rebounding further. This reasoning behind traders on the daily chart scaling back their positions – to prevent possible liquidation during the potential retest. Nevertheless, once the dip to $0.1100 concludes, there could be a significant surge in buying interest for DOGE that might propel it towards $0.25.

If Dogecoin’s price dips below $0.1100 during the present downtrend and fails to rebound above this level, it might indicate a broader weakness in the crypto market. Subsequent movements could potentially lead to a further decline, possibly down to $0.1000 or even $0.0800. This would contradict the current optimistic forecast for Dogecoin.

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2024-09-30 13:46