Dogecoin (DOGE) price regained key support at $0.15 this week, with a bounce over the past 24 hours adding further gains.
Investors are certainly looking to sell, but DOGE has some room to grow before it records profits.
Dogecoin Whale Attempts to Drive Price Up
The price of Dogecoin is aiming to secure a recovery and rise further, and whales are doing their best to help with this. This is evident from the supply increase noted last week, which shows that large wallet holders are trying to make the most of low prices.
Addresses holding between 10 and 100 million DOGE had over 500 million DOGE worth $77 million added last week. This brings the total supply to 17.57 billion DOGE.
This also means that whales are confident that prices will rise further, which is why they are obsessed with selling.
Their belief is further proven by the fact that the network is currently sending a sell signal. Network participation is taking a hit as active addresses decline.
Over the past two months, the average number of addresses conducting transactions on the network has decreased from 67,000 to 52,000. This is a 22.3% decline, mainly due to lack of incentives.
Read more: How to Buy Dogecoin (DOGE) and Everything You Need to Know
Typically, a rise in price and a decline in participation creates a deviation that signals a sell. However, DOGE holders would not consider selling right now as supply is likely to benefit once the $0.16 resistance is broken.
DOGE Price Prediction: Visible Benefits
Dogecoin’s price trading at $0.15 is above the important $0.15 support level after breaking out of last week’s dead cross. A deadcross occurs when the 200-day exponential moving average (EMA) crosses the 50-day EMA. This is considered a bearish signal that extends the downtrend.
However, DOGE will likely continue its recovery, aiming to break the resistance marked at $0.17. A turnaround of this level as support could push DOGE to hit a monthly high, allowing investors to book profits.
Read More: Dogecoin (DOGE) Price Prediction for 2024/2025/2030
On the other hand, if the $0.15 support disappears, the sideways downward trend will continue. A drop to $0.12 would invalidate the bullish argument if DOGE loses support at $0.14.
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