Should we expect Dogecoin to rise?
Against the backdrop of active growth of Bitcoin and altcoins, many have noticed that #DOGE remains virtually stationary. Such behavior may be part of the strategy of major players (whales), who often use market liquidity and the sentiment of small investors for their purposes. Let's consider how this might work.
Possible manipulation scenario
1. Liquidity overflow
When other cryptocurrencies are rising, it attracts the attention of small investors, who start selling their DOGE to invest in more dynamic assets. As a result, the price of DOGE remains low, and liquidity is redistributed.
2. Accumulation of positions by whales
If major players are interested in Dogecoin, they may start buying coins from small investors at low prices. This creates an illusion of stagnation for the general audience, but at the same time allows whales to accumulate assets.
3. Price pump
After accumulating significant volumes, whales may organize a sharp price increase. This attracts a new wave of retail investors who buy the coin on hype. At this moment, whales sell their assets for substantial profit.
Signs of preparation for a pump
Low volatility of Dogecoin against the backdrop of an active market.
Increase in trading volumes with stable prices, which may indicate accumulation of assets.
Large orders in the order book (visible on exchanges or through blockchain analysis).
How to act?
If you hold DOGE, it's important to consider this scenario, but not to rely on it as a guarantee. The cryptocurrency market is extremely volatile, and even major players can change their strategies.
For long-term investors, it's important to remember: Dogecoin remains a meme cryptocurrency, its price heavily depends on hype, social sentiments, and the actions of major players. If you see signs of whale activity, it may signal possible growth, but don't forget about the risks.
