In anticipation of the planned April Bitcoin halving event, Dogecoin whales have been steadily boosting their DOGE holdings.
This week has seen a notable 70% increase in Dogecoin’s price thanks to a bullish trend in the cryptocurrency market.
Because of a combination of fundamental and technical indicators, this momentum suggests that there may be more gains to come in March.
The recent spike in Dogecoin’s price coincides with a rise in the cryptocurrency’s holdings among its wealthiest investors, or “whales.”
For example, since the start of the year, there have been 0.7% more addresses owning more than 100,000 DOGE tokens.
At the same time, after February 12, there was a minor decline in the number of entities with a balance of more than one million DOGE.
These addresses probably represent exchanges given the sizeable holdings, indicating that traders are starting to favour keeping DOGE rather than participating in active trading. Strong buildup is indicated by this behaviour.
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The surge in Dogecoin’s value coincides with the fourth halving of Bitcoin, which is set for April 19, 2024. It’s interesting to note that the current price surge is comparable to upward trends that preceded earlier Bitcoin halving occasions in July 2016 and May 2020.
Notably, as can be seen here, the price of DOGE increased by 200% ahead of the first Bitcoin halving and by roughly 50% ahead of the second.
Generally, traders tend to seek alternative investments like memecoins for higher short-term gains, anticipating that the halving will boost the overall market.
This behavior is driven by speculation and the desire to capitalize on the increased market activity associated with Bitcoin’s supply shock.
Similar to Dogecoin, several other prominent memecoins have experienced significant increases in value in the days preceding the Bitcoin halving, such as Shiba Inu, Pepe, and Bonk (BONK).
As indicated below, DOGE’s next upside goal seems to be near its Fibonacci retracement line of 0.236.
This price point had a crucial part in the bearish phase of the market as it served as a foundational support during the decline from May 2021 to November 2021.
This threshold turned into a strong barrier in December 2021 after it flipped to a resistance level. To this day, it still holds importance as a major site of resistance.
March 2024 will see Dogecoin hit $0.18, a potential 25% increase. This is due to a strong purchasing mood in the memecoin market, which has been sparked by the recent surge in Bitcoin.
This positive trend implies that Dogecoin may reach its goal by the end of the month.
Technical analysis of the DOGE (Dogecoin) price suggests the potential for further increases.
Positive momentum in price charts, support levels indicating areas of strong demand, moving averages indicating upward trends, and relative strength index (RSI) readings above 70 may all contribute to bullish sentiment.
“In the dynamic world of cryptocurrency, technical analysis illuminates pathways while staying informed guides decisions. Amidst volatility, knowledge becomes the compass for navigating the digital asset landscape.”
Volume analysis, along with broader market sentiment and news developments, can provide additional context.
However, it’s important to consider the inherent volatility of cryptocurrency markets and employ risk management strategies when making investment decisions.
Additionally, staying informed about updates in the cryptocurrency space and monitoring market trends can help investors make well-informed decisions regarding DOGE and other digital assets.
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