Due to wider market sentiments, Dogecoin sees a major price dip in the current markets.
Whales have taken advantage of a low MVRV scenario to buy DOGE at cheaper rates.
DOGE is currently on its $0.31 support, below which it risks a 33% fall.
The US Fed's weaker guidance on rate cuts has caused the markets to panic, risking a sell-off.
However, long-term price estimates for DOGE indicate a potential to breach $36 in the current year.
Dogecoin saw a 10% market correction amid indecisiveness in the crypto markets. The selloff was probably caused by short-term investors who entered DOGE at its bull rally six days ago.
The dip has caused investors to worry as DOGE is currently at its support level. Below the $0.31 support, DOGE has the risk of moving below $0.3 and could end up even lower.
On the other hand, it has prompted whales to buy DOGE in record numbers. We have seen frequent whale activity in DOGE and will detail it in the next section of this article.
Due to such accumulation, DOGE has finally recovered its price, and at press time, the intraday loss of 10% was recovered, and DOGE traded at a loss of 3% only.
Whales Push DOGE Out of Risk Zone
CoinMarketCap
Lately, memecoins have lagged in price growth as the market shifts towards AI agents like $VIRTUAL. These AI agents have taken the market by storm because of their ability to replace entire functional teams in businesses, ranging from startups to even large-sized corporates.
Further, the markets have also gravitated towards utility coins like L1 chains, DeFi protocols, RWAs, and AI projects.
During this dip and even before it, whales have been accumulating DOGE at a very significant rate. Yesterday, we saw DOGE whale activity explode by 400%. Santiment shows how clever whales make money following market dips and how common traders like us can repeat this with just a single indicator called the MVRV.
A negative MVRV where DOGE currently lies shows that the current price is lower than what market participants have bought in recent times. This allows traders to buy at a lower price than average markets. When prices rise, these market participants make more money than others.
This is why whales have been buying DOGE at such high rates. Three days ago, we saw whales buying 140 million DOGE worth around $420 million.
On 04 January 2025, a whale bought another 146 million DOGE worth $56.4 million and removed it from the exchange. Crypto removed from the exchanges is usually meant for long-term investment.
Whales have been desperate to buy DOGE since the Department of Government Efficiency's announcement. Further, there are also high chances of X.com starting its payment and crypto exchange services and giving preference to Dogecoin, which its owner claims to have a soft spot for. Further, with the MVRV dipping to negative territory, they have been buying with a greater fervor.
Previous DOGE price predictions indicated that DOGE could rally at least 5000% to 12000% in 2025. These predictions are based on historical price patterns and current DOGE charts. In 2017 and 2021, DOGE saw an initial market rally, then a correction, and then a parabolic rally. Similar chart patterns also emerged in late 2024 and early 2025.
A rally of 12,000% from the predicted levels of $0.3 could take DOGE towards $3.6, while a smaller rally of 5,000% could help it reach $15.
Even if we ignore all these, DOGE is still predicted to grow at least 85% in January 2025. Historically, DOGE has seen an average return of 85% in January.
According to technical charts, DOGE's price seems stuck between $0.31 and $0.46. If DOGE breaches $0.46 at the upper side, a rally to $0.56 seems imminent. However, a breakdown below $0.31 could take DOGE towards $0.22, roughly 33% down from current levels.
DOGE-USDT Weekly Charts from Tradingview
Tradingview
The situation worsens because DOGE's price momentum is currently weak. At press time, DOGE's RSI was in a downward trend. This causes a bit of worry for DOGE holders, as weaker momentum leads to a breakdown in chart patterns.
Further, given the low rate cuts indicated by the US Fed minutes, DOGE might face a rough road ahead.
However, from a smart money perspective, this moment also allows traders and investors to buy DOGE at much cheaper rates and reap greater benefits when the market turns green.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it 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.