Between November 20 and 23, Dogecoin (DOGE) whales reduced their holdings, the same week the cryptocurrency reached a yearly high. This decrease in exposure caused the price of DOGE to fall to $0.36.
However, that is no longer the case today as these major players have resumed buying. Here’s how this could affect Dogecoin’s value going forward.
Important figures won't let Dogecoin go without buying
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 indicates that Dogecoin whales took advantage of the weekend dip, accumulating approximately 200 million coins. With DOGE’s current price at $0.42, this equates to $84 million in purchases. Such whale accumulation usually indicates a reduction in selling pressure.
Consequently, this increase in buying activity suggests that the price of Dogecoin may be preparing to rise beyond the current level of $0.42. If this happens, the prediction that the memecoin could reach $1 could come true.
Dogecoin Address Balance. Source: Santiment
Additionally, the Average Directional Index (ADX) has been rising steadily. ADX is a technical analysis tool that helps traders assess the strength of a trend, whether it is bullish or bearish.
When the ADX crosses 25, it signals strong directional momentum. On the other hand, a reading below 25 suggests weak movement. On Dogecoin’s daily chart, the ADX has risen to 68.00, indicating a significant uptrend. With the coin on the rise, this suggests that the price of DOGE may continue to rise.
Dogecoin Average Directional Index. Source: TradingView
DOGE Price Prediction: $1 is Still Viable
A closer look at the daily chart shows that Dogecoin’s price has found resistance at $0.43. This drop was one of the reasons why the cryptocurrency failed to climb to $0.50. It is worth mentioning that trading volume has dropped, making it difficult for the uptrend to continue.
Meanwhile, it appears that buyers are defending the $0.36 region. If this holds, then DOGE’s value could rise towards $0.48. In a highly bullish scenario, the memecoin could rise towards the $1 mark.
Dogecoin Daily Analysis. Source: TradingView
However, if DOGE whales decide to sell, this may not happen. Instead, the coin could drop to $0.32.
The article Whales accumulate 200 million Dogecoin (DOGE) after brief drop appeared first on BeInCrypto Brasil.
