Key Insights:
- Dogecoin mirrors the Bitcoin-gold ratio, raising speculation risk concerns.
- Whales accumulate 3.1B DOGE amid declining millionaire addresses.
Dogecoin (DOGE) price defends the critical $0.1500 support. However, with uncertainty across the market, its resilience faces a crucial test.
Unlike most high-caps, DOGE’s daily chart shows strong support, with sellers rejected at key levels, reinforcing a bullish structure. Amidst the consolidation, DOGE price seemed ready for a bounce and could showcase outperformance in the subsequent few sessions.
At press time, Dogecoin price was trading at $0.1699, noting an intraday rise of over 0.77%. Its market cap stood at $25.25 Billion and ranked 8th in the overall crypto market.
Dogecoin’s Correlation with Bitcoin Raises Concerns Amid Market Volatility
Bloomberg Intelligence strategist Mike McGlone analyzed DOGE price trends. He noted similarities between Dogecoin and Bitcoin behavior. This comparison considered their value relative to gold.
McGlone highlighted DOGE’s speculative nature. He stated that such assets align with high-risk markets. These markets often experience reversion.
DOGE price may face instability due to its strong connection to other cryptocurrencies like Bitcoin. This link raises concerns about the effects of market volatility.
The memecoin maintains its stability around Bitcoin’s nearly $84,000 price. However, its recent 3.55% decline indicates weakening buying pressure.
DOGE Whales Accumulate Despite Market Jitters
Data from Bitinfocharts demonstrated a noticeable decrease in Dogecoin millionaires because large holders have decreased their investments. The data indicates some whale investors maintain optimistic views toward the token.
Whales purchased 3.1 billion DOGE between March 9 and March 10 as they exhibited confidence in possible market recovery. The market impact of this recent buying activity remains uncertain for the present.
Dogecoin Price Prediction: What Are Analysts Saying?
A recent post by Coinvo revealed that DOGE price is setting up for a massive breakout rally soon. It forms a falling wedge pattern and consolidates near the trendline hurdle of $0.1700.
The Bollinger bands were squeezing, signaling a pump or dump could be seen in the next few sessions.
However, Trader Tardigrade highlighted his uncertainty, saying that the memecoin has to choose ahead. Dogecoin is nearing the lower support of the ascending triangle pattern. Analysts predict it might experience either a breakout or breakdown soon.
In case of a successful breakout, DOGE price may target $0.1710 and reach $0.2000. However, a breakdown below $0.1500 could lead to a drop toward $0.165 ahead.
The RSI line has recovered from the oversold zone. A positive crossover hints at a potential significant reversal ahead.
Furthermore, the Money Flow Index (MFI) curve rose above the 30 threshold. It revealed a rise in accumulation activity among the participants.
Going forward, the Open Interest (OI) surged 0.45% to $1.62 Billion. This revealed fresh, prolonged buildup activity in the past 24 hours.
Moreover, the OI-weighted funding rate stayed positive at 0.0038%, highlighting heightened demand for long contracts. The immediate support zones for Dogecoin were $0.1500 and $0.1320, whereas the resistance zones were $0.1870 and $0.2000.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
