Whale Purchases, ETF Talks, and Golden Crosses Fuel Dogecoin Price Spike 12% in 24 Hours
As per the data sourced from CoinMarketCap, Dogecoin has immensely staged a rally in the past 24 hours , climbing over12% and reaching a high of $0.26. The seven-day gain of the meme coins stands at 24% with on-chain, and technical indicators suggesting the bullish momentum will persist.
The confirmation of a Golden Cross on Dogecoin’s daily chart has been the primary driver of the surge. Golden Crosses are bullish signals, and Dogecoin has experienced price increases on the 50-day moving average and 200-day moving average crossovers.
Similar setups in late 2023 and early 2024 added to Dogecoin’s rally and it’s safe to say analysts expect a similar response. The analysts also expect that the Golden Cross will act as strong support for Dogecoin, conveniently positioned near the $0.20 mark.
Whale on-chain data has accumulated 1.08 billion DOGE in a span of 48 hours. This pushes whale ownership to almost 50% of the circulating supply with over $200 million. Such concentrated buying triggers a “supply squeeze” tackle the massive demand causing prices to surge. It has been noted however, that whales like to utilize the $0.23 – $0.25 band to initiate more usual price gains.
Whale Spending in the past two months has tackle the meme coin market as a whole. The surge in prices at the beginning of the meme coins rally dwarfs the recent dip in prices. Focusing on Dogecoin prices, it’s safe to say they are on the rise again and are expected to exceed the $0.32 mark.
A possible factor aiding in Dogecoin’s surge this time could be the low prices triggered by the quarrels caused at the start of the trading year. Prices were low but only for a short amount of time creating a maelstrom of high demand.
The meme coins rally in the past two months has been dubbed the “Meme Coin Rally 2023”. The sudden surge in the meme coin market with the recent dip has caused the entire market to spiral. The expectation with meme tokens will be granted shortly and the price will exceed $0.5 again.
Analysis from Coinglass strengthens the bullish argument. Dogecoin’s options volume increased by 80% to $932 million, and open interest in futures climbed by 16% to $3.7 billion. Most importantly, funding rates are neutral at +0.0093% which means the rally isn’t caused by too much leverage. Still, the entire market’s volatility is a concern given there was $40 million in Bitcoin liquidations in the past day.
ETF speculations are also helpful. Polymarket gives a 75% probability for a US-approved Dogecoin ETF. In April, 21Shares asset manager submitted an S-1 filing with the SEC, joining Grayscale and Bitwise in the scramble for a spot DOGE ETF. Grayscale filed for the ETF in March and, together with more than 70 other altcoin ETF applications, is still waiting for an answer.
And the DOGE news is not stopping there. Trader Kaleo shared a rather bullish outlook, comparing the DOGE/BTC chart to early 2021, logically suggesting that corporate treasuries might be looking into DOGE allocations soon. His long-term price target is $6.9420.
On the other hand, Crypto Patel sees absolute bullish potential for DOGE, projecting it around $2 if the asset’s current support between $0.18 and $0.23 is maintained. Meanwhile, Ali, the technical analyst, sees a bullish flag on DOGE’s hourly chart, setting a near target around $0.27.
Conclusion
Dogecoin has surged 12% recently, and it appears that this meme coin is displaying quite a bullish setup, especially when taking into consideration the confirmed Golden Cross, aggressive whale buying, and increase in derivatives volume.
In addition to ETF sentiment building up, especially after the 21Shares, Grayscale, and Bitwise filings, Dogecoin is now attracting significant institutional focus. This is especially the case since whales now own nearly 50% of the circulating supply.
While key support zones are being pointed out and breakout patterns are being drawn by technical analysts, the sentiment indicators are showing no signs of over-leverage which is rather bullish. If the range of $0.18 and $0.23 is maintained, experts suggest the near-term target to be $0.27 with a long-term range of $2 or even $6.9420.
