Shiba

Dogecoin

Rally

Shiba Inu

<p>Dogecoin (DOGE) has consistently gained traction among enthusiasts and investors, as one of the pioneering <a href="https://coingape.com/blog/3-new-memecoins-with-potential-100x-gains-in-june-2024/" rel="noopener noreferrer nofollow">memecoins</a> with its <a href="https://coingape.com/price/shiba-inu/" rel="noopener noreferrer nofollow">Shiba Inu</a> mascot. Even though it started out as a whimsical, DOGE has demonstrated potential and volatility, positioning it as a notable asset in the cryptocurrency space. Recent developments suggest a possibility of <a href="https://coingape.com/price/dogecoin/" target="_blank" rel="noopener noreferrer nofollow">Dogecoin</a> to rally soon despite painting charts red. This article delves into the main reasons why it is believed the meme coin could experience a significant price surge soon.</p>
<h2 id="strong-1-whale-accumulation-strong"><strong>1. Whale Accumulation</strong></h2>
<p>One of the most compelling signs pointing toward a potential Dogecoin rally is the recent activity of “whales,” or large investors. A crypto technical analyst, <a rel="noopener noreferrer nofollow" href="https://x.com/ali_charts/status/1797903639346081913" target="_blank">Ali Martinez,</a> recently highlighted that Dogecoin whales have purchased an additional 200 million DOGE since May 30.</p>
<p>This significant <a href="https://coingape.com/dogecoin-price-massive-doge-accumulation-signals-potential-rally-ahead/" rel="noopener noreferrer nofollow">accumulation</a> suggests that major players are positioning themselves for a potential price increase.</p>
<p>Martinez emphasized the importance of patience in the crypto market, responding to concerns about the lack of immediate price movement despite this large-scale accumulation. His sentiment is echoed by many in the crypto community, emphasizing that those who wait are often rewarded.</p>
<h2 id="strong-2-technical-indicators-suggest-a-breakout-strong"><strong>2. Technical Indicators Suggest a Breakout</strong></h2>
<p>A crypto trader, <a rel="noopener noreferrer nofollow" href="https://x.com/Kev_Capital_TA/status/1797727747034267707" target="_blank">Kevin,&nbsp;</a> has provided further insights into the technical indicators suggesting an imminent <a href="https://coingape.com/blog/when-will-btc-price-breakout-happen/" rel="noopener noreferrer nofollow">breakout</a> for Dogecoin. He highlighted the two-month Bollinger Bands Breakout indicator, which is signaling a major movement for the first time since November 2020.</p>
<figure id="attachment_200518" aria-describedby="caption-attachment-200518" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="wp-image-200518 size-full" src="https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-175302.png" alt="2-month Bollinger Bands Breakout indicator on #Dogecoin " width="2808" height="1750" srcset="https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-175302.png 2808w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-175302-300x187.png 300w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-175302-1224x763.png 1224w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-175302-768x479.png 768w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-175302-1536x957.png 1536w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-175302-2048x1276.png 2048w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-175302-150x93.png 150w" sizes="(max-width: 2808px) 100vw, 2808px">
 <figcaption id="caption-attachment-200518" class="wp-caption-text"><em>2-month Bollinger Bands Breakout indicator on Dogecoin (Source : Kevin on X.com)</em>
 </figcaption>
</figure>
<p>Additionally, the approaching two-month LMACD bullish cross points to significant upcoming price action.</p>
<p>Kevin noted that over-trading and emotional responses often cloud judgment, and it’s crucial to consider the broader macroeconomic situation. His analysis suggests that Dogecoin is preparing for a substantial move, similar to its past performance patterns.</p>
<h2 id="strong-3-historical-patterns-strong"><strong>3. Historical Patterns</strong></h2>
<p>Historically, Dogecoin’s price has often experienced large increases after periods of accumulating and retracting. DOGE broke out of a descending triangle in 2017, then made a 40% retrace, before it witnessed a 900% bull run. Similarly in 2021, the value of the token skyrocketed over 12,000%, 2021 following a 50% retracement.</p>
<p>Right now, Dogecoin has once more surpassed a descending triangle and experienced a 50% retracement, indicating the possibility of another bullish trend approaching. If the pattern of history continues, DOGE may see a surge that has the potential to exceed the $1 mark.</p>
<h2 id="strong-4-increased-transaction-volume-strong"><strong>4. Increased Transaction Volume</strong></h2>
<p>Data from <a rel="noopener noreferrer nofollow" href="https://app.intotheblock.com/coin/DOGE" target="_blank">IntoTheBlock</a> shows a significant increase in Dogecoin’s large transaction volume, which surged by 35.4%. Additionally, daily active addresses increased by 1.3%, and transactions greater than $100,000 more than doubled from 141 on June 2 to 297 on June 3.</p>
<p>Exchange inflows also saw a substantial rise from $8.6 million to $34.2 million. These metrics indicate heightened activity and interest in Dogecoin, often a precursor to price rallies.</p>
<h2 id="strong-5-market-sentiment-and-confidence-strong"><strong>5. Market Sentiment and Confidence</strong></h2>
<p>The recent <a href="https://coingape.com/glossary/whale-accumulation/" rel="noopener noreferrer nofollow">whale</a> activity and accumulation news have sparked excitement among Dogecoin enthusiasts. While the price has seen a dip, the long-term sentiment remains positive.</p>
<p>Martinez’s comments about patience being rewarded highlight a long-term perspective, suggesting that the current accumulation phase may be setting the stage for a significant price surge.</p>
<p>Crypto market expert Crypto Tony shared that if Dogecoin reclaims the $0.175 mark, it could signal a good entry point for market participants. This viewpoint aligns with the growing market confidence and the belief that DOGE’s price could witness a rally in the coming days.</p>
<h2 id="strong-dogecoin-doge-current-price-action-strong"><strong>Dogecoin (DOGE) Current Price Action</strong></h2>
<p style="text-align: center;"><img decoding="async" class="aligncenter size-full wp-image-200520" src="https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-174304.png" alt="Dogecoin (DOGE) Current Price Action" width="2540" height="1232" srcset="https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-174304.png 2540w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-174304-300x146.png 300w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-174304-1224x594.png 1224w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-174304-768x373.png 768w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-174304-1536x745.png 1536w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-174304-2048x993.png 2048w, https://coingape.com/wp-content/uploads/2024/06/Screenshot-2024-06-04-174304-150x73.png 150w" sizes="(max-width: 2540px) 100vw, 2540px"></p>
<p>Dogecoin is currently trading at $0.1588, having dropped by 2.05% in its value over the past day. This bearish trend has been consistent as demonstrated in its weekly and monthly performance, with a decrease in value of 3.50% and 6.00% respectively.</p>
<p>This declined has pushed down the market cap of DOGE by 2.04%, to $22.96 billion, although it has maintained its position as the 8th largest cryptocurrency, according to <a rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/dogecoin" target="_blank">CoinMarketCap</a>.</p>
<h2 id="strong-conclusion-strong"><strong>Conclusion</strong></h2>
<p>Dogecoin’s special place in the cryptocurrency market, along with recent large-scale buying by whales, technical indicators, historical patterns, and rising trade activity, suggests a bright outlook ahead.</p>
<p>Despite the high volatility of the crypto market, indications point to the possibility of Dogecoin (DOGE) starting a major rally soon. Investors should still proceed with caution and do thorough research, but indications suggest an exciting future for DOGE.</p>
<p>The post <a href="https://coingape.com/blog/top-reasons-dogecoin-doge-is-poised-for-a-rally-soon/" rel="noopener noreferrer nofollow">Top Reasons Dogecoin (DOGE) is Poised for A Rally Soon</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.</p>

Top Reasons Dogecoin (DOGE) is Poised for A Rally Soon

Table of Contents

Coingape News Media

Other articles published on Jun 4, 2024

DTX Exchange Holders Rejoice as Profit Sharing Announced While Near Protocol & Shiba Inu Retrace

XRP Eyes $10 After Consolidation Round the 100-week MA: Will it Break Out?

Shiba Inu Token Burn Rate Excites Altcoin Investors

DWF Labs Commits $12 Million To Floki Tokens, What’s The Catch?

Profits of Bitcoin short-term holders dip 32%, but here’s the good news

MoonBag Coin Soars to New Heights as AAVE and Cosmos Falter

Join our free newsletter for daily crypto updates!