Dogecoin Eyes Rebound Amid Bullish Signals
Key Takeaways
- Dogecoin (DOGE) is currently testing a long-term technical support level that has held since 2018.
- A technical indicator (TD Sequential) is signalling a potential buy opportunity.
- Large investors (so-called “whales”) have recently accumulated 220 million DOGE.
- Positive funding rates suggest growing interest from institutional traders.
- A price target of USD 0.65 would represent an increase of around 270% – assuming the historical price structure repeats.
Technical Analysis: A Support Level with History
Dogecoin is currently at a critical technical level. The price recently dropped to USD 0.1739, positioning it directly on the lower boundary of an ascending channel that has been in place for seven years. This zone has historically served as a turning point for upward price movements.
A technical analysis tool – the TD Sequential Indicator – has generated a buy signal on the weekly chart. This signal has previously been a precursor to significant price moves across various cryptocurrencies.
Whales Step In: 220 Million DOGE Accumulated
Between March 11 and 25, wallets holding between 1 and 10 million DOGE purchased approximately 220 million Dogecoin. This represents about 0.17% of the total circulating supply. These purchases occurred during a period when the price rose from USD 0.15 to USD 0.19 – a gain of 26%.
The fact that these buys took place precisely at the long-term support level reinforces the relevance of the technical analysis. Such movements by major investors are often seen as early indicators of market trends.
Funding Rates as Sentiment Indicators
So-called “funding rates” – fees exchanged between long and short positions in futures contracts – provide additional insights into market sentiment. In recent months, clear patterns have emerged: negative rates have coincided with price declines, while positive rates have indicated price stability or increases.
Currently, funding rates are positive once again. This suggests that many traders are betting on rising prices – despite recent pullbacks.
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Risks and Opportunities: What’s Possible?
If the current pattern repeats, Dogecoin could rise to around USD 0.65 in the medium term. This would represent a price increase of approximately 270% from current levels.
However, risks remain. If the support level at USD 0.16 fails to hold, price declines between 26% and 44% could follow. Such movements have previously been triggered by so-called “death crosses” – technical patterns where the short-term moving average falls below the long-term average.
Our Assessment
Dogecoin currently presents an interesting combination of technical analysis and on-chain data. The convergence of long-term support, a buy signal from the TD Sequential, and whale activity points to potential upside.
However, the risk of a price drop remains if current support does not hold. For investors, this means closely monitoring price action and watching for further market signals.
Entering a position could be worthwhile – but only with a clear risk management strategy.
Sources
- Santiment
- X (formerly Twitter)
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $0.16 |
| 24h % | -2.75 % |
| 7d % | -15.11 % |
| 30d % | -18.10 % |
| 60d % | -36.59 % |
| 1y % | -9.31 % |
| Market Cap | $24,029,175,963.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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