The price surge of Dogecoin (DOGE) and its implications
The recent surge in Dogecoin price
In the past seven days, the price of Dogecoin (DOGE) has seen a remarkable 27% increase, making it the top gainer among the top 10 cryptocurrencies. This surge has caught the attention of many investors and analysts, who are eager to understand the reasons behind this sudden rise.
Whale accumulation and its impact
One significant factor contributing to the price surge is the increase in the number of addresses holding large amounts of Dogecoin, also known as whales. According to data from IntotheBlock, the number of addresses holding 10 billion Dogecoin has risen by 50% in the past 30 days.
This strategic accumulation by whales indicates their optimistic outlook on the coin’s future potential. As these large investors continue to accumulate DOGE, it is likely to provide strong support for the price and drive further growth.
On-chain data and price prediction
On-chain data, such as Inflow/outflow around price (IOMAP), further supports the bullish bias for Dogecoin. The tool identifies addresses that are in profit, at a loss, or at the break-even point based on the current price.
With 1.11 million addresses purchasing significant amounts of DOGE at prices ranging from $0.089 to $0.10, there is a strong support level around $0.10. Increased buying pressure could potentially push the price above resistance levels and reach $0.13 in the near term.
Price prediction and potential risks
Despite the positive momentum, there are potential risks to consider. The entry of whale holdings into circulation could lead to a temporary drop in the price, bringing it back below $0.10.
However, the current trend of greater buying pressure and positive volume delta suggests that Dogecoin may retest $0.11 in the short term. If selling pressure remains low, the price could continue its upward trajectory and reach the overhead resistance at $0.13.
The information contained in this article is intended for informational purposes only and should not be construed as financial advice. Users are encouraged to conduct their own research and consult with a financial advisor before making any investment decisions.
