Dogecoin’s Price Dip: A Bullish Signal or a Dip to Buy?
Dogecoin’s Price Takes a Hit, but Whale Activity Sparks Optimism
The Dogecoin price has seen a significant pullback this week, dropping over 20% at times from its peak of $0.1321 on Saturday. While this decline might raise concerns for some, on-chain data and expert analysis suggest a potentially bullish future for the popular meme coin.
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Whale Activity Fuels Bullish Sentiment
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On-chain analytics firm Santiment has shed light on the robust activity of large-scale holders, known as whales, within the Dogecoin network. This activity suggests that whales may not be done with their bullish momentum on DOGE.
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Santiment reported, \”Dogecoin has retraced -18% from its top back on Saturday. But on-chain activity indicates that whales may not be done with all the bullish momentum of crypto’s top meme coin. Though they took profit just before the top, their activity remains very high on DOGE’s network.\”
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The analytics firm also highlighted a surge in Dogecoin’s network activity, noting a 7-month high in address activity and a 4-month high in whale transactions, coinciding with a spike in retail transactions following the price dip.
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Technical Analysis Points to a Potential Rally
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Crypto analyst Ali Martinez has highlighted the significant growth in the Dogecoin network, observing a 72% increase in new DOGE addresses over the past week. He stated, \”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!\”
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Martinez also provided a technical analysis, pointing out that DOGE might be approaching a MACD bullish crossover on the weekly chart, a potential indicator of upcoming price increases.
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\”The last two times Dogecoin DOGE had a MACD bullish crossover on the weekly chart, it rallied 90% and 180%, respectively. A new MACD bullish crossover could be forming soon!\” he explained.
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Another renowned crypto analyst, Luciano, has identified a breakout from a descending channel on the daily chart. He advised his 2.2 million followers on X, \”DOGE has had a decent run in recent times and looks like this will continue. In my opinion dips are for buying and DOGE will have a spectacular season this cycle. DYOR – NAFA.\”
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Dogecoin’s Future: A Bullish Outlook?
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Despite the recent price drop, the on-chain metrics and expert analysis suggest a potentially bullish future for Dogecoin. The high whale activity, increased network activity, and technical indicators point to a potential rally in the near future. However, it’s important to conduct thorough research before making any investment decisions.
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At press time, DOGE traded at $0.1087.