From November 20 to 23, Dogecoin (DOGE) whales reduced their holdings—during the same week, the cryptocurrency hit an annual high. The reduction in holdings led to Dogecoin's price dropping to $0.36.
However, the situation is no longer the same today, as these key stakeholders have resumed buying. Here are the potential impacts this may have on Dogecoin's future value.
Whales won't let go of Dogecoin
According to Santiment, the balance of addresses holding 1 million to 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's decline to accumulate about 200 million coins. At Dogecoin's current price of $0.42, this amounts to a purchase worth $84 million. Such accumulation by whales typically indicates a reduction in selling pressure.
Therefore, the surge in buying activity suggests that Dogecoin's price may exceed the current $0.42. If this is the case, then the prediction for Dogecoin to reach $1 may come true.
Additionally, the Average Direction Index (ADX) has been steadily rising. ADX is a technical analysis tool that helps traders assess the strength of a trend, whether bullish or bearish.
When the ADX exceeds 25, it indicates strong directional momentum. Conversely, a reading below 25 indicates a weak trend. On Dogecoin's daily chart, the ADX has soared to 68.00, indicating a clear upward trend. As the token rises, this suggests that Dogecoin's price may continue to increase.
DOGE Price Prediction: $1 Still Feasible
Further examination of the daily chart reveals that Dogecoin's price encountered resistance at $0.43. This drop is one of the reasons the cryptocurrency failed to rebound to $0.50. It is worth mentioning that the decrease in trading volume makes sustaining an upward trend difficult.
Public. Zong. Good: Liu Liu's Coin (Weekly Monday to Saturday Bitcoin and Ethereum early evaluation strategy analysis, long-term recommendations for quality individual coins and live analysis)
Meanwhile, bulls seem to be defending the $0.36 area. If this continues, then DOGE's value may rise to $0.48. In a highly bullish scenario, the meme coin could rebound to the $1 mark.
However, if DOGE whales decide to sell, this scenario may not occur. Instead, the token could drop to $0.32.
