Dogecoin Faces Potential Price Drop to 20 Cents Amid Whale Activity Decline
Dogecoin (DOGE) Market Overview
- Death cross observed between the 50 and 100-day Moving Averages, leading to bearish sentiment.
- Current valuation: approximately $37.3 billion; 24-hour trading volume: about $1.5 billion.
- Price consistently below 31 cents, indicating potential for further market corrections.
- Recent price action suggests a bearish flag formation following long trader liquidations.
- Potential retest of support around 20 cents, aligned with the 0.618 weekly Fibonacci Retracement.
- Recent support retest at the 50-weekly Moving Average.
Long-Term Outlook
- Possible exponential rally towards all-time highs in the upcoming 2024/2025 bull phase.
- Short-term price may decline by up to 42% towards 14 cents.
Whale Activity Decline
- 88% drop in whale activity since mid-November 2024, impacting short-term bullish sentiment.
- Lower demand for meme coins due to recent issues on the Solana (SOL) network.
Fundamental Analysis
- Dogecoin transitioning to a utility-based asset with increasing institutional interest.
- Total hashrate stands at about 2.07 PH/s; mining difficulty at around 30.84 M.
- Community growing to over 6.18 million holders.
- US SEC acknowledged Grayscale's application for a spot DOGE ETF, with other filings expected soon.