Dogecoin, the largest memecoin by market cap, is undergoing a market correction, but analysts see potential for growth.
Technical Analysis of DOGE
Dogecoin is in a bullish pennant, which may indicate a price rise. The current price at $0.24 signifies a retesting of a descending trend's lower boundary, suggesting a possible reversal. The daily RSI is in the oversold territory, generally a signal for a potential bounce. The 200-day moving average acts as strong support, enhancing the scope for recovery.
On-Chain Data and Whale Activity
Data from Santiment highlights significant accumulation by 'whale' investors in Dogecoin. Wallets holding between 10 and 100 million DOGE have reportedly acquired about 750 million DOGE recently. These investors now hold more than 23.2 billion DOGE, indicating a growing interest from institutional and high-net-worth investors.
External Factors and Meme Influence
The hype around meme cryptocurrencies like TRUMP on the Solana blockchain has bolstered interest in Dogecoin. An increasing number of companies now accept DOGE as a form of payment. Dogecoin's network boasts a strong mining community, which contributes to long-term viability.
Dogecoin is experiencing a smooth market correction, but the data suggests a potential bounce to $0.48 if current support zones hold.
