310,000,000 DOGE in 2 Days: Is Dogecoin Ready to Rally After 10% Drop?

TL;DR:

Despite a recent price dip in Dogecoin (DOGE), several bullish indicators suggest the potential for a significant rally. Whale accumulation, rising exchange outflows, and an oversold Relative Strength Index (RSI) are fueling optimism among analysts, with price targets reaching $0.52 and even a new all-time high of $5.

The Whales and Other Bullish Factors

Dogecoin, the leading meme coin, has experienced a notable price correction, declining by approximately 10% over the past 24 hours and currently trading around $0.23 (according to CoinGecko data).

However, recent activity by large investors, or "whales," hints at a potential uptrend on the horizon. Crypto analyst Ali Martinez reported that these major players have acquired over 310 million DOGE within a 48-hour period, "signaling major accumulation after a brief profit-taking dip."

This substantial purchase equates to roughly $73.5 million, bringing the whales' total holdings to approximately 25.42 billion tokens. This represents 16.6% of Dogecoin's circulating supply, valued at over $6 billion.

This accumulation by large investors reduces the available supply on the open market, potentially triggering a price surge if demand remains consistent or increases. Moreover, their actions could inspire smaller investors to inject fresh capital into the Dogecoin ecosystem.

The increasing outflow of DOGE from cryptocurrency exchanges is another positive sign. Data from CoinGlass indicates that investors have been transferring their holdings from centralized platforms to self-custody solutions in recent months, suggesting a decrease in immediate selling pressure.

DOGE Exchange Netflow, Source: CoinGlass

Finally, Dogecoin's Relative Strength Index (RSI) has fallen close to 30. This level typically suggests that the asset is oversold and may be due for a trend reversal. Conversely, an RSI above 70 often indicates that the asset's valuation has increased too rapidly and may be followed by a short-term correction.

DOGE RSI, Source: CryptoWaves

Price Predictions

Despite the recent price decline, many Dogecoin enthusiasts remain optimistic about its potential to reach new highs soon. Crypto analyst Galaxy suggested that the pullback served as a retest of a recent breakout, envisioning a new uptrend that could reach as high as $0.52.

Ultimae GL sees "a high probability" for DOGE to reach $0.35 next, provided it holds $0.21 as support and breaks above $0.28.

CryptoELITES believes that Dogecoin's bull run is far from over, setting an ambitious target of $5 as the next all-time high.