Dogecoin’s price surges 20% to $0.068 driven by whale activity, with active buying orders exceeding sell orders, suggesting potential further gains.
Key Takeaways
- Dogecoin’s price surges by 20% in just a week, reaching $0.068.
- Whale activity plays a significant role in driving up DOGE’s price.
- On-chain data indicates a bullish outlook with strong demand outpacing supply.
- Potential resistance at $0.075 and support at $0.060 could shape DOGE’s future.
Dogecoin (DOGE), the darling of meme coin enthusiasts, has taken the crypto world by storm, witnessing a remarkable 20% price surge within a week, reclaiming the coveted $0.068 price point. This surge follows a brief dip to $0.057 on October 14, leaving market analysts and enthusiasts intrigued by this swift turnaround.
Whale Activity Peaks: A Catalyst for Change
The resurgence of DOGE’s price can be attributed to a surge in whale activity, evident in on-chain data spanning from October 14 to October 25. Whales, significant holders of cryptocurrencies, made their presence felt during this period. On October 15, there were a mere 599 whale transactions (transactions exceeding $100,000). By October 24, this number had surged to 1,420, marking the highest level since July 25. This heightened whale activity has injected confidence among retail investors and provided liquidity for efficient trading.
Crypto Sensation: Dogecoin Skyrockets 10% in Whales' Shopping Frenzy – $0.10 in Sight? https://t.co/ywlMPeYx3V#DOGE #Dogecoinhttps://t.co/ywlMPeYx3V
— ETHNews (@ETHNews_com) October 26, 2023
The big question remains: Will these major players continue to push for gains or consolidate their positions?
Demand Outpaces Supply: A Bullish Outlook
A glance at the order books of top cryptocurrency exchanges, such as Binance and Coinbase, reveals a favorable scenario for the bulls. Active buy orders for Dogecoin total 782 million DOGE, surpassing the active sell orders at 740 million DOGE. With demand outstripping supply by over 38 million DOGE, sellers may need to raise their prices to meet orders, potentially fueling further price increases.
However, caution is advised around the $0.075 mark, indicated by the Global In/Out of the Money data, where many addresses purchased DOGE at an average price of $0.075. Profit-taking by these holders could introduce bearish pressure.
On the flip side, failure to maintain momentum and a drop below $0.050 may favor bears. Yet, with a strong support buy-wall anticipated around $0.060, the bulls appear poised to keep control and propel DOGE’s upward journey.
To Conclude
Dogecoin’s recent price surge, fueled by whale activity and robust demand, suggests a positive outlook. However, investors should closely monitor key price levels like $0.075 and $0.060, as they could influence the cryptocurrency’s future trajectory. The crypto community eagerly awaits to see if DOGE can reach the elusive $0.10 mark in the near future.
