The price of dog currency (DOGE) returned to the $0.068 mark on Tuesday, just two weeks after it fell to its annual low of $0
The price of dog currency (DOGE) returned to the $0.068 mark on Tuesday, just two weeks after it fell to its annual low of $0.057 on October 14th.
In the context of a thriving market, the active distribution of dog coin orders on the exchange has triggered some early warning signals.
On chain data shows that from October 14th to October 25th, there has been a significant increase in demand for dogcoin whales, which has helped prices rebound.
On Tuesday, the price of Dogcoin entered a weekly 20% increase range, once again reaching the level of 0.068 US dollars. On chain data analysis studied the impact of increased demand for giant whales on the recent trend of dog coin prices.
After the price of Dogcoin fell to an annual low of $0.057 on October 14th, it lagged behind Solana, and then whale investors took action to avoid historic losses. Do they have enough funds to drive the price of dog coins to continue to rise to new heights?
Dog coin whale trading activity reached its highest point in three months
Between October 14th and October 23rd, the price of dog coins quickly rebounded by 20%. On chain data shows that among the memes with the largest market capitalization, the giant whale has regained interest in them, which is one of the main driving factors.
As shown in the figure below, when the price of dog coins was at the bottom of the year, only 599 transactions of giant whales were recorded.
But since then, the giant whales have intervened to avoid greater losses. On October 24th, Gougou Coin recorded 1420 whale transactions, the highest since July 25th.
The Giant Whale Trading Index displays the total daily trading volume exceeding $100000. The increase in whale trading is seen as a bullish signal for several reasons:
Firstly, it indicates an increase in purchasing interest among whale investors, thereby enhancing the confidence of retail investors. More importantly, the liquidity provided by these large transactions enables traders to execute trades more effectively and obtain favorable prices. As expected, during that period, the price of dog coins quickly rebounded by 20%. But with the continuous increase of giant whales, it remains to be seen whether the price of dog coins will maintain its foothold or continue to actively advance.
The increase in orders indicates that bulls still dominate
The current trading price of dog coins is at a peak of 60 days, and an important on chain indicator indicates that holders may still drive more returns.
Specifically, the latest data from the total order books of 10 cryptocurrency exchanges (including Coin and Coinbase) shows that despite the current high prices, there is still excess market demand for Dogcoin.
As shown in the figure below, traders have placed 782 million active orders for DOGE. At the same time, there were only 740 million active sales orders from DOGE.
The aggregated order book chart displays the current price distribution of active buy and 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 asset demand exceeds supply, the seller may be forced to raise prices in order to complete the order. In summary, the whale activity and increased market demand for dog coins are important indicators pointing to further price increases in the coming weeks.
Dog coin price forecast: heading towards $0.08?
As the bulls take control of the situation, the price of dog coins may be about to rebound, moving towards $0.08.
The Global In/Out of the Moneydata also confirms this, reflecting the historical purchasing trends of dog coin holders. However, data shows that bulls may face significant resistance in the $0.075 area.
As shown in the figure below, 568920 addresses purchased 59.6 billion dog coins at an average price of $0.075. If they choose to sell early, it may trigger a bear market reversal.
But if the bullish giant whale continues to purchase dog coins, the price may reach the predicted $0.08. On the other hand, if the price of dog coins drops below the $0.05 level, bears will take control. But as observed last week, bulls may establish strong supportive buying around $0.06.
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 for a long time, 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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