As Dogecoin’s (DOGE) price struggles to stabilize, buyers are taking advantage of the dip, purchasing the meme coin in large quantities. This influx of capital signals a strong belief that DOGE may be poised for a rebound.
If these strategic purchases persist, DOGE could recover a significant portion of its losses from the past three months. Here’s how.
Dogecoin Bulls Prepare to Inject $50 Million
As of this writing, Exchange Onchain Market Depth data reveals that market participants are prepared to buy 500 million Dogecoin coins once its price drops to $0.0099. For context, the Onchain Market Depth offers insights into the order books of the top 20 exchanges.
At Dogecoin’s current price, this buying volume represents a $50 million investment in the coin. On the other hand, sellers are ready to offload 365 million coins, valued at $36.5 million.
The increased presence of buyers looking to purchase at the dip suggests that a price upswing could materialize in the coming weeks or months, driven by this demand.
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Furthermore, Santiment data shows an increase in the balance of addresses holding 1 million to 10 million Dogecoin coins. Typically, when this balance decreases, it indicates holders are selling off their assets.
The current rise suggests that DOGE accumulation is occurring not only on exchanges but also on-chain. Historically, simultaneous accumulation on centralized platforms and on-chain has reinforced a bullish bias, signaling potential upward momentum for the coin.
As such, Dogecoin’s price could trade much higher. Crypto analyst Rekt Capital also seems to share a similar sentiment. On September 14, the analyst noted that DOGE could soon break out of the downtrend and go on a consistent upswing.
“Ever since breaking its Macro Downtrend, DOGE has been in experiencing a post-breakout retest of that DowntrendA successful retest would confirm a new Macro Uptrend,” Rekt Capital said.
DOGE Price Prediction: 50% Increase Possible
At press time, Dogecoin is trading at $0.10, a key price level for the meme coin. The daily chart indicates strong support in this zone, suggesting DOGE could bounce from this level.
Additionally, the Money Flow Index (MFI) is currently above the signal line, signaling significant capital inflows. If the MFI stays above the midpoint, Dogecoin’s price could rise.
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If this trend holds, DOGE could rally by nearly 50% to reach $0.15. However, if the coin breaks below its support, the bullish outlook would be invalidated, potentially leading to a drop toward $0.091.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Victor Olanrewaju
https://beincrypto.com/dogecoin-price-poised-for-rally/
2024-09-16 21:00:00
