“Dogecoin retains its original name while semantic creativity remains unchanged”
Dogecoin (DOGE) is currently experiencing consolidation just below the $0.08 level, with a 1.7% decrease in the first week of February 2024. However, there is potential for a positive breakout if bullish whales take advantage of the dip.
The memecoin sector has had a slow start to February 2024, with coins like Shiba Inu down 4%, BONK down 9%, and PEPE down 5%. These coins have all seen significant losses between January 31 and February 7.
Despite this, DOGE has shown resilience compared to its rival meme coins, with less than a 2% decrease in the first week of February. Recent on-chain data suggests that strategic whale investors buying the dip could be responsible for DOGE’s steady price action in the past two weeks.
According to Santiment’s supply by addresses metric, whale wallets holding between 10 million to 1 billion DOGE had a total of 44.75 billion DOGE coins as of January 23. However, as of February 7, their cumulative balances have increased to 45.09 billion.
The price of DOGE has been defending the $0.08 level since experiencing a 6% dip on January 23. On-chain data shows that whale investors have taken advantage of the price pullback to acquire millions of dollars worth of DOGE at a discounted price.
The question now is whether the Dogecoin bulls have enough momentum to reclaim the $0.1 level this week. It is worth noting that in the past, significant buying from whale investors has often preceded DOGE price rallies.
In addition to whale investors, speculative traders have also started leaning bullish on DOGE. The funding rate for DOGE has been on the rise, indicating that long position holders are paying higher fees to short traders in anticipation of higher profits when prices rise.
Based on these market trends, it is forecasted that DOGE could retest the $0.1 level in the coming days. However, there may be significant resistance around $0.085, as indicated by the upper-Bollinger band technical indicator. A decisive breakout above that level could lead to a bullish rally towards $0.10.
On the other hand, if the DOGE price falls below $0.07 for the first time in 2024, it could negate this bullish narrative. However, there is significant support at the $0.075 level, as shown by the lower Bollinger band.
