3 Reasons Why Dogecoin (DOGE) Poised for Another 70% Jump by July
Despite recent bearish sentiment and market volatility, Dogecoin (DOGE) could rally 70%, driven by technical indicators and key support levels.
Dogecoin (DOGE) prepares for a substantial 70% rally by July, driven by a combination of whale accumulation, key support levels, and technical indicators. Despite the recent bearish sentiment, these factors suggest a potential upward movement for DOGE in the coming months.
Whale Accumulation Signals Bullish Momentum
A significant driver of this potential rally is the activity of whale investors. Addresses holding between 10 million and 100 million DOGE have collectively added over 900 million DOGE in just a week. This $129 million worth of accumulation has increased their total supply to 18.09 billion DOGE.
Following this massive accumulation, DOGE experienced a price drop, suggesting that these whales might be preparing for a significant rally or are currently experiencing losses. The moves of whale investors often signal upcoming market shifts, indicating a bullish trend.
Technical Patterns and Indicators
On the technical end, the Relative Strength Index (RSI) at 40.07 suggests a slightly bearish momentum but not an oversold market, indicating potential room for a surge to 70% if bullish catalysts materialize.
The Money Flow Index (MFI) stands at 42.22, indicating neutral market conditions without extreme overbought or oversold pressures. This neutral MFI suggests that while the bearish breakdown from the Rising Wedge is a critical indicator, the market does not exhibit strong momentum in either direction.
DOGE/USD 1-day price chart, source: TradingView
Key Support Levels Indicate Potential Surge
According to Crypto Daily Trade Signals, Dogecoin finds support around its 200-day Exponential Moving Average (EMA) at $0.132, aligning with the 61.8% Fibonacci retracement level. If this support holds, DOGE could rally to $0.175 and possibly extend to $0.202 if market conditions are favorable.
#Dogecoin price finds support around its 200-day Exponential Moving Average (EMA) at $0.132.
This level roughly coincides with the 61.8% Fibonacci retracement level at $0.133, drawn from the swing low of $0.074 on January 8 to a swing high of $0.229 on March 28.
If this support… pic.twitter.com/gwjPBJsJqG— Crypto Daily Trade Signals (@cryptodailyTS) June 14, 2024
Astro, another analyst, highlights a pattern commonly seen before a bull launch: an initial rise, a consolidation phase, and a significant upward move. This pattern underscores investor psychology, where initial surges are driven by positive sentiment, followed by profit-taking and skepticism during consolidation. If support holds and positive catalysts emerge, confidence returns, attracting more buyers and leading to a rally.
This #Dogecoin pattern, commonly seen before a bull launch, involves an initial rise, a consolidation phase, followed by a significant upward move.
This occurs due to psychological and market dynamics:
1. Initial Surge: Driven by positive news or sentiment, early investors… pic.twitter.com/JVTHpebZwR
— Astro 🏴☠️ (@Astro1062) June 14, 2024
The daily chart for Dogecoin against Tether (USDT) in a 1-day timeframe shows several important technical indicators. The Fibonacci retracement levels drawn from the swing low of $0.115121 to the swing high of $0.228800 highlight key support and resistance points.
The 38.2% retracement level at $0.136845 provides immediate support, while the 50% retracement level at $0.154403 serves as a crucial resistance point. Currently, DOGE is priced at $0.142919, which is below the 50% retracement but above the 38.2% level, indicating a consolidation phase. The decreasing volume trend suggests that significant price movement may occur once trading activity picks up.
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Naveed Iqbal
Naveed is a skilled crypto journalist exploring blockchain things for over 6 years now. He enjoys covering breaking stories in crypto and web 3 space. With a deep understanding of digital currencies and sharp analytical mind, Naveed has earned a reputation for delivering well-researched and thought-provoking articles at multiple crypto outlets.
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