• 29 May, 2024
Market News

Dogecoin Breaks Away from Crypto Trends with 9% Surge, as Large Holders Accumulate Over $123M Worth Since Jan 1st.

Key Insights:

  • Dogecoin is breaking away from the broader crypto market trend, with a 9% surge over the weekend while most cryptos remained flat. 
  • Santiment’s data shows large holders accumulating 1.47 billion DOGE coins worth $123.1 million since January 1st, pointing towards a positive outlook for its future price.
  •  Dogecoin hints at a positive outlook for the coin’s future price, as large holders of the asset continue to accumulate coins.

Over the weekend, Dogecoin, the popular meme-based cryptocurrency, demonstrated some interesting market behavior by showing signs of mild decoupling from the broader crypto market. While most cryptocurrencies were trading flat, Dogecoin experienced a notable 9% increase in its value over the past 24 hours.

DOGE supply Held-1M+DOGE Addresses, Source: Santiment

According to data from Santiment, a blockchain analytics platform, addresses that hold 10 million or more Dogecoins have been accumulating the cryptocurrency since January 1st, 2023. In total, these addresses have accumulated 1.47 billion Dogecoins, which is equivalent to approximately $123.1 million in value.

This data suggests that large investors or institutions may be interested in accumulating Dogecoin as a long-term investment, potentially driving up demand and price. The accumulation trend is particularly interesting because it indicates that these investors may have confidence in the long-term prospects of Dogecoin despite its initial origins as a joke cryptocurrency.

Dogecoin has been on a rollercoaster ride over the past few years, initially gaining popularity as a meme coin and rising to mainstream attention after tweets from high-profile figures like Elon Musk. The cryptocurrency’s value has been known to fluctuate dramatically in response to social media sentiment and the actions of influential individuals.

However, this recent accumulation trend by large investors may suggest a more stable future for Dogecoin, as these investors are likely to hold the cryptocurrency for the long term rather than engage in short-term trading. If this trend continues, it could potentially lead to increased demand and value for Dogecoin, further decoupling it from the broader crypto market and solidifying its position as a legitimate investment option.

Dogecoin Price Analysis

The Dogecoin price analysis for today shows a bearish trend with the DOGE-USD pair trading at $0.0782, down 5.21% in the last 24 hours. Despite this bearish sentiment in the short term, it is possible that Dogecoin’s current price could be supported by long-term holders if they continue to accumulate coins as suggested by Santiment’s data.

DOGE/USD daily chart, Source; CoinMarket Cap

The support level for Dogecoin is currently at $0.0782 and the resistance level is at $0.0822, indicating a narrow trading range for the next few days. If bearish sentiment persists, the price of Dogecoin could fall below the $0.0766 support level and if bullish sentiment prevails, it is possible for DOGE-USD to move up to $0.0850 or higher, and the accumulation trend by large holders continues.

Looking at the technical indicators, the RSI is currently at 53.57 which reflects a neutral to slightly bullish sentiment in the short term. The MACD remains bearish with the signal line below the MACD line and the histogram is in the red. The EMA-20 is also bearish with the EMA-50 below the price. The moving average indicator shows that the short-term sentiment is bearish and there could be a further downside if sellers remain in control of the market.

DOGE/USD 1-day chart, Source; TradingView

Overall, Dogecoin is showing signs of decoupling from the broader crypto market which could be a positive indicator for its future price if large holders continue to accumulate coins. It remains to be seen whether this trend will persist in the long run, but in the short term, it looks as though DOGE-USD could remain in a narrow trading range.

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