There has been a noticeable increase in the combined holdings of large investors owning between 10 million to 100 million Dogecoin [DOGE] in recent weeks, coinciding with significant purchasing activity during price declines.
Indeed, large Dogecoin holders have been quite active, with approximately 210 million DOGE being bought by these significant investors.
This buying trend typically either stabilizes prices or drives them upwards by shrinking the available supply in the market. Therefore, DOGE stands to benefit from the attention of high-volume traders.
This demonstrates a noteworthy level of confidence from investors in the potential rise in prices in the future.
DOGE’s MACD Pattern Cross
Analysis of DOGE’s price movement in a 2-hour interval revealed a sequence of increasing lows, indicating a bullish trend, and the price has now returned to above the $0.40 mark.
These ascending lows were evident at pivotal levels such as $0.33, $0.36, and $0.40, denoting points where buying interest consistently surpassed selling pressure.
However, there was a short ‘Liquidity Sweep’ phase where the price briefly dropped below $0.36 before bouncing back, testing the strength of buyers.
The ‘Demand Zone,’ a robust area of buying activity marking previous low points of consolidation, could serve as the foundation for propelling DOGE past $0.5 prior to another pullback.
The MACD indicator illustrated a bullish crossover, as it moved above the signal line, suggesting the potential for further upward momentum.
This positive signal matched the structural insights from the price chart, indicating a favorable market sentiment towards Dogecoin.
If this pattern persists, the price of Dogecoin may continue to climb beyond $0.5, the previous peak before the correction, buoyed by strong buyer enthusiasm and positive momentum signals from MACD.
Market Outlook
Further analysis revealed that both the general public sentiment and that of sophisticated investors (“Smart Money”) were aligned in favor of DOGE, with a bullish stance from both parties.
The “Crowd Sentiment” index showed a reading of 0.37, slightly leaning towards positivity on the scale, signaling a moderately optimistic sentiment among regular investors.
Similarly, the “Smart Money Sentiment” displayed a positive outlook, albeit with a cautious tone at 0.29, also positioned in the positive zone.
These findings suggest that there is a degree of optimism regarding Dogecoin from both retail and institutional investors following its recent price adjustments and subsequent rebound, underscoring a collective optimistic sentiment.