The price of Dogecoin (DOGE) experienced a significant increase on Wednesday, reaching a three-month high of $0.076. This surge in value resulted in a 23% gain over the course of the past 30 days. The research conducted on the blockchain explores the potential impact of increasing market demand on the price movement of DOGE in the upcoming days.
The price of Dogecoin has seen significant growth in the meme coin market this week, surpassing other popular meme coins such as PEPE and Shiba Inu (SHIB) in terms of gains. Is it possible for the bulls to continue the upward trend and reach the challenging $0.1 threshold?
In the past 30 days, there has been a significant investment of $2 billion by a prominent investor in Dogecoin (DOGE), resulting in a notable impact on its price.
In recent weeks, there has been a notable shift in the focus of crypto whale investors towards the joke coin markets, resulting in significant benefits for Dogecoin. Based on the data provided by IntoTheBlock, there has been a notable increase in the amount of DOGE coins held in custody by individuals classified as whales, who own a minimum of $100,000 worth of DOGE. Specifically, the observed increase in holdings has risen from $7.65 billion to $9.35 billion throughout the timeframe spanning from October 8th to the present. This suggests that there has been a notable surge in investment by crypto whales, amounting to a substantial rise of $1.7 billion within the span of one month.
The Whale Balances Chart is a tool that monitors and records the dynamic fluctuations in the quantity of coins held by significant institutional investors in real-time. The shown trend line above provides a visual representation of the significant growth in the whales' holdings, amounting to $1.7 billion, over the course of the previous month.
The substantial rise in the holdings of whales is commonly regarded as a strong indication of the high level of trust that major institutional investors have in the future price prospects of DOGE.
Retail market participants have also begun the process of purchasing.
Furthermore, alongside the increasing demand for whales, the retail market for Dogecoin has now exceeded the quantity of purchase orders on the spot markets. According to the aggregated order books data obtained from 10 cryptocurrency exchanges, such as Binance and Coinbase, it has been seen that the bullish market participants have actively placed orders to purchase about 872,000 units of DOGE at prices now prevailing in the market. In the meanwhile, the traders have exclusively offered a cumulative amount of 810 million DOGE for purchase.
The graphic of aggregate order books provides a comprehensive overview of the current purchase and sell orders posted by traders on several centralized cryptocurrency exchanges. In instances where the quantity of buy-orders above that of sell-orders, as seen above, it indicates a prevailing purchasing trend within the Dogecoin markets.
Therefore, given the limited supply of DOGE coins in comparison to the existing demand, purchasers may be required to raise their bids in order to promptly fulfill their purchases. There is a possibility that this might unintentionally result in an increase in the value of DOGE, pushing it closer to the $0.1 threshold during the upcoming week.
Doge Price Projection: Progress towards $0.1?
The aforementioned analysis of on-chain statistics indicates that the prevailing investor opinion towards $DOGE is predominantly optimistic.
The projection is further supported by the Global In/Out of the Money data, which serves as an on-chain depiction of the past buying patterns of Dogecoin holders. The analysis indicates that the $0.081 level is a prominent resistance point for the DOGE price.
As seen in the following data, a total of 740,950 addresses made purchases of 18.05 billion DOGE at the highest recorded price of $0.081. The premature liquidation of their positions has the potential to trigger an untimely retraction in the price of Dogecoin.
However, in the event that influential investors in the cryptocurrency market continue to acquire substantial amounts of Dogecoin, there is a possibility that the price surge might perhaps reach the projected value of $0.1.
On the other hand, the bears have the potential to challenge the aforementioned prognosis in the event that the price of Dogecoin falls below the threshold of $0.050. However, it is anticipated that the support level at $0.065 would be a significant challenge in this scenario.
The provided figure illustrates that there are presently 436,210 addresses that own a total of 14.96 billion DOGE, which were acquired at the highest price point of $0.066. By maintaining their HODLing strategy, it is probable that they will mitigate the occurrence of a significant decline in the price of DOGE.