Big holders of Dogecoin, known as “whales,” have been buying more DOGE coins before the expected April Bitcoin halving.
The price of Dogecoin, which is around $0.14, has jumped by about 70% this week. This surge is part of a positive trend in the cryptocurrency market. It suggests that there could be more gains in March, supported by both technical and fundamental factors.
Dogecoin Whales: Accumulation Insights
Dogecoin’s price has been going up lately because its wealthiest investors, also called ‘whales,’ are buying more DOGE coins. For example, the number of accounts holding over 100,000 DOGE tokens has gone up by 0.7% since the start of the year.
With their significant holdings, these addresses are likely linked to exchanges, hinting that traders are opting to keep DOGE rather than actively trade it. This behavior suggests a strong trend of accumulation.
Meme Coin Craze Precedes Bitcoin Halving
Doge’s price is rising before the fourth Bitcoin halving, set for April 19, 2024. This price surge is similar to what happened before the previous Bitcoin halvings in May 2020 and July 2016.
Interestingly, Dogecoin’s price went up 200% before the first Bitcoin halving and about 50% before the second one.
Usually, traders look for other investments like meme coins to make quick profits, thinking that the halving will boost the whole market. This is because people speculate and want to take advantage of the increased activity in the market caused by Bitcoin’s supply shock.
Moreover, other famous meme coins such as Shiba Inu, Pepe, and Bonk have also witnessed a significant increase in price as Bitcoin halving in near future.
Dogecoin Price Analysis Suggests Further Upside Potential
Dogecoin aims for its 0.236 Fibonacci retracement line soon. The line was a key support from May 2021 to November 2021. It has been key during market downturns. Transitioning to a resistance level in December 2021, it became a significant barrier, maintaining its relevance as a major resistance point.
As March 2024 begins, Dogecoin could potentially experience a 25% increase, reaching $0.18, driven by strong buying activity in the meme coin sector following Bitcoin’s recent surge. This positive trend suggests that Dogecoin might achieve its target by month-end.
