In just two weeks, the price of Dog Coin (DOGE) fell to its annual low of $0.057 per coin on October 14th and successfully recovered to $0
In just two weeks, the price of Dog Coin (DOGE) fell to its annual low of $0.057 per coin on October 14th and successfully recovered to $0.068 per coin on Tuesday.
Despite the unlimited market prospects, the current active distribution of dog coin orders on the exchange conveys some warning signals.
According to on chain data, there was a significant increase in demand for dog coins between October 14th and 25th, which helped drive a rebound in prices.
On Tuesday, the price of Dog Coin (DOGE) increased by 20% and successfully recovered to $0.068. In response to the increasing demand for whales, on chain data analysis has studied how it has affected the recent price trend of dog coins.
On October 14th, the price of dog coins fell to an annual low of $0.057 per coin. Prior to this, its price fell behind Solana, causing whale investors to flock to avoid historic losses. The key question now is whether they have enough funds to drive the ongoing recovery of dog coin prices and push them to new heights.
In the past three months, the whale trading activity of dog coins has reached its peak. From October 14th to 23rd, the price of dog coins increased significantly by 20%. On chain data indicates that whales have regained interest in the largest meme coin by market value, which is one of the main driving forces behind price increases.
According to the chart, there were a total of 599 whale transactions on October 15th when the price of dog coins was at the bottom of the year. However, thereafter, the whales began to actively intervene to avoid further losses. On October 24th, Gougou Coin recorded 1420 whale transactions, the highest level since July 25th.
The WhaleTransaction indicator shows large transactions exceeding $100000 per day. The increase in whale trading is seen as a bullish signal for various reasons.
Firstly, this indicates an increase in interest among whale investors in purchasing, which in turn boosts the confidence of retail investors. Secondly, these large transactions provide liquidity, allowing traders to execute trades more effectively at favorable prices.
It can be foreseen that during this period, the price of dog coins quickly rebounded by 20%. However, further observation is needed on whether whales will consolidate their position or continue to actively seek more profits in the future.
The increasing buying indicates that bulls are still controlling the market.
Considering that the current trading price of Gougou Coin is at a 60 day high, a key on chain indicator indicates that holders still have the opportunity to earn more profits.
Data shows that the latest order books of 10 cryptocurrency exchanges, including Binance and Coinbase, show that despite the current high prices, there is still excess market demand for Dogcoin.
As shown in the figure below, the trader has placed a purchase order worth 782 million dog coins, while the active sell order is only 740 million dog coins.
The total order book chart displays the current price distribution of active buy and sell orders placed by traders for specific cryptocurrency assets.
According to the chart, the current demand for dog coins exceeds the market supply by over 38 million pieces.
When the demand for an asset exceeds supply, sellers may be forced to raise prices as they compete to complete orders.
DOGE Price Forecast: The Road to $0.08?
With bulls firmly controlling the market, the price of dog coins is expected to rise to $0.08.
The global capital inflow/outflow data reflects the historical purchasing trends of dog coin holders, which has been confirmed. However, this also means that bulls may encounter significant resistance near the $0.075 area.
According to the data shown in the figure below, 568920 addresses purchased 59.6 billion DOGEs at an average price of $0.075. If these holders choose to make early profits, it may trigger a bearish reversal.
However, if bullish whales continue to purchase dog coins, the price may reach $0.08, as predicted.
The market is constantly changing. If you want to stay together for warmth or have any doubts, please feel free to leave a message.
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