- A crypto trader projected a likely 200% rally for DOGE.
- There was more demand than the current sell pressure, which could boost prices.
As a seasoned researcher with over two decades of experience in the crypto market, I must admit that the recent performance of Dogecoin (DOGE) has been quite intriguing. The 230% rally in Q4 is impressive, but the projection of a potential 200% surge to $1.16 by trader 52K Skew seems rather audacious, even for a meme coin like DOGE.
In the final quarter of the year, it’s clear that Dogecoin [DOGE] outshines other traditional meme coins significantly, boasting a remarkable increase of approximately 230% at the moment this article was published.
52K Skew, a crypto trader, thinks that the dog-themed meme coin may continue to gain momentum in its upward trend.
By employing Fibonacci retracement levels based on the three-year support level of $0.05 and the previous record high, he estimated that DOGE might aim for $1.16. This potential jump would represent a significant leap of approximately 200%, given its current price standing at $0.39.
DOGE’s demand outpaces selling pressure
Meanwhile, when the news was published, there was a significant excess in the market due to traders cashing out their profits and miners selling their assets.
Based on information from Santiment, it appears that miners sold more than 20 million Dogecoin tokens during the strong market surge, as indicated by the steep drop in the miner’s supply (represented by the red line) from approximately 2.13 billion to 2.11 billion tokens.
As a researcher, I ponder whether a surge in miner sales might have been counterbalanced by increased demand from prominent investors (whales) and regular buyers (retailers).
Whales scooped over 150 million DOGE tokens in the past week alone, translating to over 7x demand, more than the selling pressure from miners.
Additionally, it’s worth noting that miners are currently holding approximately 2 billion DOGE, suggesting they may have a strong belief in the coin’s future price increase.
Over the weekend, I observed an intriguing surge in activity among memecoin users, with the number of active addresses peaking at over a million – a figure not seen in a year. This significant spike suggests heightened investor engagement and enthusiasm in the memecoin market.
Read Dogecoin [DOGE] Price Prediction 2024-2025
On a single day, retail traders showed signs of significant selling, as their wallets saw a decrease of more than 24,000 units, according to Santiment’s observation.
The analytics firm also suggested it could be a bullish cue for DOGE.
When the total number of wallets in a network decreases, it could indicate fear, uncertainty, and doubt (FUD) among new traders and their willingness to sell or “capitulate.” This situation might be beneficial for the coin’s price because those coins being sold are likely to be bought by larger investors known as whales and sharks who hold onto the coins for long-term investments.
Given that fact, as DOGE’s price remains above crucial resistance levels, there’s potential for further growth even amidst the ongoing selling pressure from traders looking to cash out their profits.
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2024-11-19 20:08