As Dogecoin has slumped hard to the bottom levels, it creates an excellent opportunity for whale investors to buy the dip.
A constant buying pressure from the crypto market may lead to a short squeeze, taking DOGE to new highs.
The famous Dog themed meme cryptocurrency, Dogecoin, has witnessed a mixed reaction from the market amid the turmoil. The upward rally of Dogecoin of over 150%, which was initially led by Elon Musk’s Twitter acquisition, has now completely gone under the blanket as FTX’s collapse draws investors’ attention.
The downfall of FTX has brought extreme fear for whale holders and investors as they were pushed to book profits to avoid making any further significant losses. However, whales now have started accumulating DOGE again with an optimistic hope relying on Doge-father Elon Musk’s further moves, which can soon lift the meme coin to new highs.
Dogecoin Whale Accumulation May Bring A Short Squeeze!
After trading in bearish territory for nearly six months, Dogecoin’s massive uptrend in October brought bullish hopes to investors with its much-awaited price goal of $1. However, Dogecoin failed to maintain its stability above $0.1 as it got trapped by bears of the market after being triggered by FTX’s demise.
According to on-chain analyst firm IntoTheBlock, whale investors have woken up amid the current market crash, which has pushed DOGE’s price to its initial price level of $0.08. Some analysts see this price level as an excellent opportunity to execute ‘buy the dip, sell the rip.’ The firm noted that large holders made an inflow of 871 million DOGE with a hope of a bull run in the next few days to maximize the profits of their DOGE holdings.
Moreover, a well-known pseudonymous crypto analyst, CryptodailyTS, predicted that a breakout above the resistance of $0.08 might bring more buying pressure in the DOGE price chart as investors are investing heavily in the dip. The analyst further predicted that a continuous whale accumulation for DOGE might force short sellers to exit their positions, leading to a short squeeze to $0.09.
DOGE Price To Fly Above New Highs
Twitter’s CEO Elon Musk has been quite dominant in controlling the price movement of Dogecoin through his influential tweets. It is expected that Dogecoin’s integration with the social media giant may bring a robust upward rally with the aim of $1 ahead.
Over the last few days, Dogecoin has been progressing slowly to the North in the price chart after breaking above its immediate resistance level of $0.078. Looking at the daily price developments, DOGE trades at $0.08029, with an uptrend of 3.2% from yesterday’s performance.
The RSI-14 indicator is making a solid upswing as it trades at 45-level, hinting at intense buying pressure in the DOGE price chart. Moreover, the MACD line has gained control near its signal line and aims to take the meme coin to its 23.6% Fib retracement at $0.084.
However, there is a strong resistance zone at $0.86, where EMA-200 is currently trading. If DOGE surpasses its resistance at $0.86, it can attempt to make a bullish breakout at its Bollinger band’s upper limit of $0.94 and head toward its next resistance level of $0.12.
However, Dogecoin may retest its support level at $0.073 before initiating a clear uptrend. If DOGE fails to hold its price above $0.073, it may significantly drop to its Bollinger band’s lower limit of $0.05 and consolidate in that region for the rest of the year.
This article has been originally published at: https://coinpedia.org/price-analysis/dogecoin-is-preparing-for-a-potential-bull-run-here-is-how-high-doge-price-can-fly-next/