Recent Dogecoin whales garrulous to buy 140 million Doge revealed a lot of confidence in the market.
The timing of this major accumulation coincides with Dogecoin’s entry into the market cycle “Optimism” stage. It is a phase that usually precedes bull runs.
Over the last day, the whales of Dogecoin stepped up. They bought 140 million Doge (approximately 56 million dollars). This amount of accumulation could accompany growth in the Dogecoin price. It means this kind of investor is very bullish on the coin.
This kind of activity can impact the market as these large wallets do not act irrationally. They make such dramatic purchases when they feel the time is ripe.
Large purchases of this nature have the potential to draw the retail market also. They will view it as an endorsement of the strength of the Dogecoin market.
As the market waits to see what move Dogecoin shows next, this whale buy that took place recently can either lead to consolidation at these levels or proceed higher, depending on the level of interest from large investors and whatever announcements come up concerning the wider application of Dogecoin.
Dogecoin Enters “Optimism” Stage in Market Cycle, Signaling Bullish Trend.
According to the psychology of the market cycle, Dogecoin presently finds itself at the ‘Optimism’ stage. It signifies the very beginning of what could be bullish movements.
Like any other classic market cycle, this stage of optimism among the investors is usually moved into and flows through stages of “belief” and “thrill” until the stage of “euphoria.”
According to Trader Tardigrade’s analysis, it can be inferred that Dogecoin is moving towards the higher stage of the cycle, enabling a higher uptrend in price.
He also suggests that there are some earlier cycle stages that were negative in sentiment that Dogecoin has been able to move past. Such cycles include “panic” and “capitulation,” that stage when all trades are selling at a loss and panic sets in.
Now that the market sentiment has improved to “optimism,” the market conditions suggest that participants are more likely to stay in the market, hoping to reap more profits.
This positive sentiment may lead to more such initiates as others may enter in search of higher prices, subsequently pushing Doge even higher.
The current phase of the Dogecoin cycle can attract speculative buyers and long-term investors, as some projections expect the price to reach $10.
Such a high price may be reached with considerable momentum of the coin and an enabling environment across the broader market,
DOGE Experiences Support of $0.35 as Bullish Trend Allows Dogecoin to Retain Around This Level After a Rally
A period of accumulation is witnessed on the Doge 4-hour chart after a major move upwards. The price is in a range with a support at $0.35 and a resistance at $0.420, thus establishing a period of consolidation before the next move.
Presently, the 50-day Simple Moving Average stands at $0.3033, while the 200-day SMA is at $0.1860. Both SMAs are lower than the current price, indicating a strong bullish sentiment.
The existing range between the shorter-term and advanced SMAs also supports the continuation of the existing trend and perhaps even higher if the consolidation area breaks upward.
Furthermore, the MFI indicator stands at 32.44, meaning that the Doge price is nearing an overbought condition. So, if there’s a demand increase, the price could attract potential buyers.
If there’s a breakout from the accumulation zone, this will likely lead to another leg-up around the next resistance area of $0.60.
On the other hand, if the DOGE price falls below the support level of 0.35, it can signal either a change in the trend or a further retracement.
