Key Insights:
Dogecoin has gained over 32% in the last seven days, taking its price to $0.1489 amid wide market growth.
The rally has likely originated due to strong whale buying and institutional interest.
Memecoins have been a top-performing sector since the start of the bull rally.
The price rally in Dogecoin will likely be sustained due to high market liquidity.
Finally, Dogecoin charts show the formation of a bullish rounding bottom pattern, signifying trend reversal.
After waiting at $0.1 levels from the first week of August 2024 to the third week of October, Dogecoin has finally moved the needle and rallied.
The top memecoin rose over 30% in less than a week, and at press time, its weekly gains stood at $0.04, roughly equal to 32% in gains.
Dogecoin Rallies 31% Over Last Week
The gains in Dogecoin stems from several reasons, such as whale activity, increased traction of memecoin tokens, rate of returns in memcoins, and possibly institutional interest.
As a result of this move, Dogecoin has become the largest gainer among top memecoins over the last week. Other memecoins like Shiba Inu have also gained decent numbers but were shadowed by Dogecoin's growth.
Dogecoin Outperforms Memecoins
Top crypto analyst also doubles down on his prediction that Dogecoin could reach $10 in the near to medium term.
Dogecoin On-Chain Metrics
Several whales have recently shown renewed interest in Dogecoin. Last week, whale transactions exceeded $3.14 billion, which is massive considering Dogecoin's total market cap of $21 billion.
Whales have been acquiring Dogecoin since the start of this bull season in January 2024. They now account for 62% of the total Dogecoin ownership.
However, there is also a downside to this. Such a high concentration of whales in Dogecoin and other memecoin gives them the power to manipulate the markets, sometimes with shortage and sometimes with excessive supply.
Too much shortage in DOGE causes the price to jump high like last week, and too high supply makes its price crash, just like we saw last month when Dogecoin was stuck at $0.1 despite rallies in the broader markets.
Data from IntotheBlock shows that Dogecoin saw $136 million in net inflows in various exchanges. This confirms that not only whales bought Dogecoin, but there was also significant interest from retail markets.
This interest results from the massive gains that memecoins have since the start of this year. Data from Hashkey Global shows that memecoins gained 39% in September alone. Over the year, their gains cross 1000% in returns.
The reason why Dogecoin benefits from this growth in memecoins because conservative investors who make up the bulk of the crypto markets often want their capital invested in safer cryptocurrencies.
Dogecoin's price is less likely to slide down because the current market has everything it needs to keep the price rallies going.
First, there is ample liquidity in the markets, as the Fed has been reducing interest rates and is expected to do so again in its next meeting on November 6 to 7, 2024.
Secondly, the trend of institutional investment in memecoins has been growing. Grayscale has already put Dogecoin on its list of potential investments.
Finally, Dogecoin charts show strong bullish potential.
Dogecoin-USDT Daily Charts
Dogecoin's charts show the formation of a bullish rounding bottom chart pattern. The RSI has already shown a breakout, which only happens during super-bullish scenarios. Moreover, the MACD has already shown a positive crossover.
Remember, for all that to happen, it must first cross $0.15. This price marks an important resistance in the Dogecoin charts and was last reached on 6 June 2024.
The next price target for Dogecoin is around $0.17, with a support level of $0.15. On the downside, $0.125 remains a strong support.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.