- The increase indicated rising demand, suggesting that DOGE could begin another rally.
The 90-day MCA and circulation revealed that selling pressure had decreased.
As an experienced analyst, I see the recent whale accumulation of Dogecoin (DOGE) as a bullish sign. The increase in buying activity from large holders suggests rising demand for the coin and could potentially lead to another rally. However, for DOGE to validate this bullish prediction, other metrics need to align.
Large investors holding between 100 million and 1 billion Dogecoin (DOGE) have been amassing coins since May 28th, as indicated by data from Santiment. The approximate value of their acquisitions exceeded $100 million.
Due to the increased holding by this group, the share of the supply they controlled grew from 20.69% to 21.40%. This shift was evident in the distribution of addresses. The spike in purchasing behavior might positively influence Dogecoin’s price.
DOGE is ready: For what?
As a Dogecoin investor, I’ve observed that when the trading volume of this cryptocurrency spikes up, it often indicates a growing demand for the coin. Consequently, a potential price surge may ensue. Currently, the Dogecoin price hovers around $0.15, suggesting that its price movement has remained relatively stable over the last week.
Should the increase in whale holdings continue, Dogecoin’s market situation might evolve significantly. This prolonged accumulation could potentially trigger a surge in value for the cryptocurrency, leading to a breakthrough above $0.20, as we witnessed in March.
As a financial analyst, I’ve made an optimistic prediction about Dogecoin. However, for this projection to hold true, some key performance indicators must support this outlook. If these metrics line up as expected, then the price of Dogecoin could potentially move in the bullish direction mentioned earlier.
If you don’t take this action, there’s a risk that DOGE‘s price may drop down to $0.12. According to AMBCrypto’s analysis, the Mean Coin Age (MCA) of DOGE was examined to assess its potential price movement.
As the Average Coin Age grows, it signifies that older coins are being transferred among digital wallets. Typically, this situation implies a spread of coins throughout the market, contributing to a decrease in coin prices.
Old coins are back to base
Based on the data presented in the graph, I’ve noticed an uptick in the 90-day moving average (MCA) for DOGE starting from the first week of April, with values steadily rising until the 29th of May. This trend implies that long-term holders have been selling off their DOGE stocks during this period. Consequently, the price of DOGE has been fluctuating between $0.13 and $0.16 throughout the past month as a result.
Over the last three days, the metric has been trending downward. The current figure, which is 49.08 at the moment of publication, indicates that a larger number of coin holders are choosing to store their coins personally instead of keeping them on exchanges.
If the current trend persists over the next several weeks, Dogecoin might experience a steep upward price trajectory, benefiting the bullish side. Additionally, on-chain analysis indicates a decrease in the amount of Dogecoins in circulation.
At present, there are approximately 357.04 million coins circulating daily, which signifies a smaller volume of coins being used for transactions. This decline in circulation might be beneficial, as it could imply reduced selling pressure.
As a researcher studying market trends, I’ve noticed that a lack of intense selling pressure doesn’t necessarily mean a bullish market is imminent. However, when I observe other positive indicators such as rising volume and increasing buying interest, it seems plausible that a price rally could be just around the corner.
Is your portfolio green? Check the Dogecoin Profit Calculator
In addition, Dogecoin holders in profit were 83% at press time, according to IntoTheBlock.
Should DOGE‘s value begin to rise gradually, this percentage has the potential to escalate, possibly reaching a point where 90% of its holders are experiencing gains.
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2024-06-01 05:11