Dogecoin Price Dip: Whales Active Amid Signs of Bullish Momentum

Coinspeaker
Dogecoin (DOGE) Price Decline: High Activity Among Whales Amidst Possible Bullish Momentum

Dogecoin

DOGE
$0.11



24h volatility:
1.0%


Market cap:
$0.00 B



Vol. 24h:
$0.00 B

has recently gained significant attention as on-chain metrics are turning favorable, hinting at the potential for a bullish trend. On October 1, prominent crypto analyst Ali shared compelling metrics regarding Dogecoin on X. His observations highlighted a noteworthy growth in the Dogecoin network over the past week, showcasing a 72% rise in new DOGE addresses.

He further noted that on just Monday, 19,630 new DOGE addresses were generated. This increase in new addresses indicates that more individuals are engaging with Dogecoin. The growing enthusiasm surrounding this meme coin may stem from the positive sentiment unraveling in the broader crypto market. Many analysts are speculating about an approaching bullish rally, suggesting that October could very well be an “Uptober” for cryptocurrencies.

The #Dogecoin network is experiencing significant growth! Over the past week, there's been a 72% increase in new $DOGE addresses, and just yesterday alone, 19,630 new #DOGE addresses were created! pic.twitter.com/5Tj8ZvcxUu

— Ali (@ali_charts) October 1, 2024

Given Dogecoin’s history of thriving during market rallies, investors may be gearing up to take advantage of the anticipated surge, should the forecasts materialize.

From September 7 to 28, Dogecoin experienced a rise of nearly 50%. Such increases draw more wallets to the network as investors begin to FOMO into the ecosystem. However, the price has since corrected by approximately 20% at the time of writing.

According to Santiment, an on-chain analytics firm, this price adjustment may not reflect the overall sentiment within the DOGE community, as whale activities remain significantly active. The price decline was primarily instigated by profit-taking from whales, but the increasing metrics still imply that the momentum may not have faded just yet.

Dogecoin has retraced -18% from its peak last Saturday. Yet, on-chain activity suggests whales may still be bullish on this top meme coin. Even though they took profits just before the top, their activity remains robust on DOGE's network. pic.twitter.com/FsmWJGkSE6

— Santiment (@santimentfeed) October 2, 2024

Technical Analysis Indicates Impending Rally

Ali also made another post on Dogecoin, revisiting historical patterns that may signal a possible DOGE rally. The analyst utilized the Moving Average Convergence Divergence (MACD) indicator for his evaluation. He pointed out that during the last two instances when DOGE experienced an MACD bullish crossover on the weekly chart, there were respective price surges of 90% and 180%. The chart he shared indicates that the MACD line is approaching the Signal Line, suggesting a potential crossover that could catalyze a significant movement.

A broader analysis of Dogecoin indicates that it traded within a descending channel from March until mid-September, when it eventually broke out. Following this bullish breakout, the price showed minimal or no retest and began to climb, but as investors started taking profits, it began to experience a decline, still fulfilling the necessary test criteria. A successful retest would imply that the previous resistance can serve as a new support level. If this occurs, a substantial rally could follow.

Photo: TradingView

The Relative Strength Indicator on the daily chart is currently at 58, suggesting that the price still has room to grow before reaching overbought territory if the bullish trend continues.

Examining the Simple Moving Averages, the short-term 50-day SMA is currently acting as support for the price, hinting at a potential rally. However, the longer-term 200-day SMA is positioned above the price and may create resistance in the medium term.

While the rising on-chain metrics present a bullish narrative, the technical analysis indicates a more complex scenario. These factors highlight the necessity for the price to navigate some robust resistance—such as the 200-day SMA—and sustain key support (the top of the broken descending channel) for a decisive rally to materialize.

Dogecoin (DOGE) Price Decline: High Activity Among Whales Amidst Possible Bullish Momentum