Dogecoin, a popular cryptocurrency, is showing signs of price growth due to double bottom formation and active accumulation by large investors.
Current Price and Dogecoin Decline
As of July 7, Dogecoin was trading at $0.1700, slightly above the year-to-date low of $0.1467. The price has decreased by 35% from its peak in May.
Whale Accumulation and Its Significance
On-chain data shows that major investors (whales) have continued to accumulate Dogecoin over the past few months. Holders of between 1 million and 10 million tokens now own over 10.5 billion coins, up from 10.32 billion in February. Likewise, those holding between 10 million and 100 million coins now control over 24.8 billion coins, an increase from last year’s low of 18.2 billion. Growing whale accumulation is a bullish sign as these investors are generally more seasoned than retail participants.
Technical Analysis of Dogecoin Prices
The daily chart shows that DOGE price bottomed at $0.1467, which was a significant level in March, April, and June this year. It has formed a double bottom with a neckline at $0.2596, the peak in May. The Relative Strength Index (RSI) has bounced back and is approaching the neutral point at 50. Similarly, the two MACD lines have made a bullish crossover, indicating an upward trend. Thus, the coin is likely to maintain its bullish outlook as long as it remains above the double bottom at $0.1467. A rebound could see it rise and retest the resistance level at $0.2595. A drop below the support at $0.1467 would invalidate the bullish forecast.
Increasing accumulation of Dogecoin by major investors and positive technical indicators create optimistic prospects for the cryptocurrency in the near future.
