Less than two weeks after falling to an annual low of $0.057 on October 14th, the price of Dog Coin recovered by $0
- Less than two weeks after falling to an annual low of $0.057 on October 14th, the price of Dog Coin recovered by $0.068 on Tuesday.
- In the context of a thriving market, the distribution of active dog coin orders on the exchange has issued some warning signals.
- On chain data shows that DOE recorded a significant increase in whale demand between October 14th and 25th, which helped prices rebound.
The price of Dog Coin (DOGE) rose 20% on Tuesday, recovering from the $0.068 range. On chain data analysis studied how the increase in whale demand has affected the recent price trend of DOGE.
After falling to an annual low of $0.057 on October 14th, the price of dog coins lagged behind Solana before whale investors rushed in to avoid historic losses. Do they have enough funds to push the ongoing DOE price recovery to new heights?
Dog coin whale trading activity has reached its peak in three months
From October 14th to 23rd, the price of dog coins significantly increased by 20%. On chain data shows that whales' renewed interest in memes, which have the largest market value, is a major driving force.
As shown in the figure below, with the price of DOGE hovering at the bottom of the year, the number of dog coins recorded 599 whale transactions on October 15th.
But since then, the whales have started to pounce to avoid greater losses. On October 24th, Gougou Coin recorded 1420 whale transactions, the highest level since July 25th.
WhaleTransaction indicator displayThe total number of transactions exceeding $100000 per day. The increase in whale trading is considered a bullish signal for various reasons.
Firstly, this means that whale investors have increased purchasing interest, thereby boosting the confidence of retail investors. More importantly, the liquidity provided by these large transactions enables traders to execute trades more effectively at favorable prices.
As expected, the price of dog coins quickly rebounded by 20% during this period. However, it remains to be seen whether whales will consolidate their position or continue to actively seek more profits for c.
The increasing number of buying orders indicates that bulls are still in control
Due to the current trading price of Dog Coin being at a peak of 60 days, a key on chain indicator indicates that holders can still strive for more returns.
Representative of this is the latest data from the total order books of 10 cryptocurrency exchanges, including Binance and Coinbase, which shows that despite current high prices, there is still excess demand in the DOGE market.
As shown in the figure below, traders have placed active orders to purchase 782 million DOGE coins. At the same time, there were only 740 million active sales orders for DOGE.
The total order book chart displays the current price distribution of active buy/sell orders placed by traders for specific cryptocurrency assets.
As shown in the above figure, the current demand for DOGE exceeds the market supply by over 38 million pieces.
When the demand for a certain asset exceeds supply, sellers may be forced to raise prices as they compete to complete orders.
In summary, the increase in whale activity and the market demand for dog coins are important indicators, indicating that prices will further increase in the coming weeks.
DOGE Price Forecast: The Road to $0.08?
With the bulls firmly controlling, the price of dog coins may soon rise to $0.08.
The global capital inflow/outflow data represents the historical purchasing trend of dog coin holders, which also confirms this. However, this indicates that bulls may face significant resistance near the $0.075 area.
As shown in the figure below, 568920 addresses purchased 59.6 billion DOGE at an average price of $0.075. If they choose to book some profits in advance, they may trigger a bearish reversal.
But if bullish whales continue to buy dog coins, the price may reach $0.08, as predicted.
The downside is that if the price of dog currency falls below the $0.050 mark, bears will seize control. But as observed last week, bulls may establish strong support buying around $0.060.
The above figure shows that there are currently 491950 addresses holding 5.77 billion DOGEs, with a maximum price of $0.60. If they hold it, they can prevent the price of dog coins from reversing.
But if the support level falls, it may trigger a significant drop in prices below $0.05.
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