Dogecoin's Whale Transactions Surge But Does It Really Have '10x Potential'?

Author: Khyathi Dalal | August 09, 2024 10:59am

Dogecoin (CRYPTO: DOGE) whale transactions are rising alongside improved price action, prompting traders to foresee a better outlook for the apex meme coin.

What Happened: Bitcoin analyst Cryptorphic highlighted that after trading within a tight channel for over three years, Dogecoin broke out with a massive surge in February 2024. Since then, it has been retesting this breakout, leaving many wondering if this is just the beginning of a major rally. Trading above the 200-day exponential moving average (EMA) and battling to stay above the 100-day EMA further supports the bullish case.

Dogecoin's relative strength index (RSI) is currently below 45, suggesting there's plenty of room for growth. A weekly close above $0.11 could trigger a significant move upward. He predicts a 10x move from current prices. The trader’s strategy is holding spot for the next six months and accumulating on any dips.

$DOGE 10x Potential or too good to be true??🚀

It has been trading within this channel since February 2021, over 1,127 days, until it broke out with a massive candle in February 2024. Since then, it has been retesting the breakout.

Here's why I believe DOGE can 10x to nearly a… pic.twitter.com/IaDIP6k2I3

— Cryptorphic (@Cryptorphic1) August 9, 2024

The trader further pointed out that Elon Musk is a known Dogecoin enthusiast and could bring attention back to the meme coin after the upcoming presidential election. Given Musk's influence, his endorsement could act as a catalyst for a price surge.

Crypto trader Kevin noted that Dogecoin has formed a massive bullish divergence on the 3-day 200 simple moving average. The trader suggested to keep a close eye on the meme coin.

Also Read: Dogecoin Has ‘Fairly Bottomed,’ Says Trader: Is Now Finally The Time To ‘Size Up’?

IntoTheBlock data shows large transaction volume increased by 36.3%, while daily active addresses increased by 1.5%. Exchange netflows skyrocketed by 2,029.2% in a single day. Despite recent price volatility, 70% of Dogecoin holders are currently in profit.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Will Dogecoin, Shiba Inu, and Pepe Continue The ‘Memecoin Supercycle’ Despite The Crypto Crash? ‘Just The Tip Of The Iceberg,’ Trader Thinks

Image: Shutterstock

Posted In: $DOGE