Between November 20 and 23, Dogecoin (DOGE) whales reduced their holdings — the same week the cryptocurrency hit a yearly high. This reduced exposure caused DOGE’s price to drop to $0.36.
However, that is no longer the case today, as these major shareholders have resumed buying. Here’s how that could impact Dogecoin’s value in the future.
Big boys won't leave Dogecoin unpurchased
According to Santiment, the balance of addresses holding between 1 million and 10 million DOGE dropped to 10.39 billion on November 23 but has since risen to 10.59 billion.
This suggests that Dogecoin whales took advantage of the weekend’s drop, accumulating around 200 million coins. At DOGE’s current price of $0.42, this equates to $84 million worth of purchases. Whale accumulation often indicates a reduction in selling pressure.
Therefore, this surge in buying activity suggests that Dogecoin price may be ready to rise beyond its current level of $0.42. If this is the case, the meme coin’s expectations of reaching $1 may come true.
In addition, the Average Directional Index (ADX) has been steadily rising. ADX is a technical analysis tool that helps traders assess the strength of a trend, whether it is bullish or bearish.
When the ADX is above 25, it indicates strong directional momentum. Conversely, a reading below 25 indicates weak movement. On the daily chart of Dogecoin, the ADX has risen to 68.00, indicating a significant uptrend. As the coin rises, this suggests that the DOGE price may continue to rise.
DOGE Price Prediction: Is $1 Still Possible?
Another look at the daily chart shows that Dogecoin price faced resistance at $0.43. This decline was one of the reasons why the cryptocurrency failed to rise to $0.50. It is also important to mention that the trading volume decreased, making it difficult for the uptrend to continue.
Meanwhile, bulls seem to be defending the $0.36 area. If that continues, DOGE could rally towards $0.48. In a very bullish scenario, the meme coin could rally towards the $1 mark.
However, if the Doge whales decide to sell, this may not happen. Instead, the coin may drop to $0.32.