As Dogecoin’s (DOGE) price encounters challenges in stabilizing, buyers are seizing the opportunity to acquire the meme coin at reduced prices. This surge in buying activity indicates a strong confidence level that DOGE may be on the verge of a recovery.
Should these calculated acquisitions continue, DOGE might reclaim a substantial portion of its losses from the last three months. Here’s the breakdown.
Dogecoin Bulls Set to Invest $50 Million
At the time of writing, data from the Exchange Onchain Market Depth indicates that traders are ready to purchase 500 million Dogecoin coins if the price falls to $0.0099. This Onchain Market Depth provides a glimpse into the order books of the leading 20 exchanges.
Given Dogecoin’s current price, this buying intention equates to a $50 million investment in the cryptocurrency. Conversely, sellers are prepared to sell off 365 million coins, which is valued at $36.5 million.
The heightened activity from buyers aiming to purchase during this dip hints that a price rally could be likely in the upcoming weeks or months, driven by the demand.
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Moreover, Santiment data indicates a rise in the number of addresses holding between 1 million and 10 million Dogecoin coins. Ordinarily, a decrease in this balance suggests that holders are selling their assets.
The current increase signals that DOGE accumulation is happening both on exchanges and directly on the blockchain. Historically, when both centralized platforms and the on-chain market show accumulation, it has resulted in a bullish sentiment, indicating potential upward movement for the coin.
Therefore, Dogecoin’s price could experience a notable increase. Crypto analyst Rekt Capital shares a similar perspective. On September 14, he commented that DOGE might soon break free from its downtrend and embark on a sustained upswing.
“Since breaking its Macro Downtrend, DOGE is experiencing a post-breakout retest of that Downtrend. A successful retest would confirm a new Macro Uptrend,” Rekt Capital stated.
DOGE Price Projection: 50% Growth Possible
At the time of reporting, Dogecoin is priced at $0.10, a critical level for the meme coin. The daily chart shows substantial support in this area, indicating that DOGE could bounce back from this point.
Additionally, the Money Flow Index (MFI) is currently positioned above the signal line, indicating considerable capital inflows. If the MFI remains above the midpoint, Dogecoin’s price is likely to climb.
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If this trend continues, DOGE has the potential to rally nearly 50% to reach $0.15. However, should the coin fall below its support level, the optimistic outlook may be compromised, possibly leading to a decline towards $0.091.
Disclaimer
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