Date: Sat, Dec 21, 2024, 11:01 AM GMT
The cryptocurrency market is showing signs of recovery after the December 17 Federal Reserve meeting triggered a sharp correction. Bitcoin (BTC) rebounded from $92,000 to just below of $98,000, and Dogecoin (DOGE) followed suit, offering hope to its investors.
On December 20, $DOGE experienced a significant dip, falling to $0.2644 amid a market-wide sell-off. However, the memecoin bounced back swiftly and is now trading at $0.3344 with the rally of over 20%, reflecting a solid recovery. The rebound has been fueled largely by strategic whale activity during the dip.
Whale Accumulation
While retail investors sold off their holdings during the market turbulence, whales—large investors holding substantial amounts of cryptocurrency—stepped in to accumulate DOGE at lower prices. According to crypto analyst @ali_charts, wallets holding between 1 million and 10 million DOGE purchased over 250 million DOGE during the downturn, valued at approximately $84.6 million at an average price of $0.33.
Source: @ali_charts (X)
This accumulation by whales not only prevented further declines but also drove the price upward, demonstrating their pivotal role in influencing market dynamics.
Historical Patterns and Growth Potential
Dogecoin’s recent price movement resembles historical patterns observed before its previous rallies. Analyst @ChandlerBingPL highlighted that DOGE often begins significant uptrends approximately 262 days after Bitcoin halvings. The current price action fits this timeline, with DOGE trading within an ascending channel, a structure often associated with accumulation phases before breakouts.
Source: @ChandlerBingPL (X)
Additionally, technical indicators like the Relative Strength Index (RSI) suggest that DOGE is oversold, creating a foundation for its next upward move. If historical trends hold true, Dogecoin is projected to reach $2.35–$2.62 as per analyst by early 2025, signaling a potential return to its previous highs.
Final Thoughts
As DOGE has rebounded with significant whale activity and historical patterns indicating a positive outlook, investors should remain cautious. The market is still in a correction phase, and close attention should be paid to Bitcoin's price movements, as they often set the tone for the broader crypto market.
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Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
