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Dogecoin whales are buying the dip: Will DOGE lead a meme coin price rally?

  • Dogecoin price yielded 9% gains overnight as large wallet investors continued accumulating the meme coin. 

  • The largest meme coin in the crypto ecosystem showed mild decoupling signs from the broader crypto market over the weekend. 

  • Analysts are bullish on DOGE, predicting a run up to $0.80 in a massive price rally. 

Dogecoin, one of the largest meme coins in the crypto ecosystem, recently decoupled from other cryptocurrencies. DOGE price yielded 9% gains for holders since April 1. 

Whales continued accumulating DOGE tokens, fueling a bullish sentiment among holders. 

Also read: Elon Musk supports DOGE holders after $258 billion Dogecoin lawsuit

Dogecoin decouples from crypto market, what to expect

Analysts at the crypto intelligence tracker Santiment recently commented on Dogecoin’s decoupling from the crypto market. DOGE price rallied 9% overnight, driving a bullish sentiment among holders. 

DOGE accumulation and recent decoupling

Dogecoin accumulation and recent decoupling 

As seen in the chart above, experts identified a pattern of alternating “dump” and “accumulation” cycles in the Shiba-Inu-themed cryptocurrency. While DOGE is currently in the accumulation phase, it remains to be seen how long this phase lasts before whales take profits.

Large wallet investors have continued their accumulation of the Shiba Inu rival throughout the accumulation phase. Large wallet investors added over 10 million DOGE worth $123.1 million within three months. 

What’s next for Dogecoin price

Dogecoin price is currently in an accumulation phase, according to analysts at Santiment. Post this accumulation phase, if DOGE price sustains its uptrend, a bullish breakout is likely. The price chart below shows that the Dogecoin price broke out of its downtrend. 

The Relative Strength Index (RSI) shows a bullish divergence. This is typically considered a bullish sign for DOGE price. DOGE price would face resistance at the Fibonacci Retracement levels at $0.21, $0.31, $0.47, and $0.59 before hitting its bullish target. 

DOGE/USDT 1D price chart

DOGE/USDT 1D price chart

It's yet to be determined if DOGE will continue its upward trend and generate more profits for its holders, and also whether it will trigger a surge in other meme coins related to Shiba Inu.Crypto analyst @WorldOfCharts1 has set a target of $0.80 for the meme coin.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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