Key Highlights:
- Smart traders accumulate 142.65M DOGE, signaling potential gains ahead
- Dogecoin’s active addresses reached to 4-month’s high hints rising network participation.
Following a 38% decline in a month, Dogecoin defied the bearish trend and remained in a range. Interestingly, the memecoin have observed signs of accumulation as smart traders have stepped in, which hints growing confidence.
Smart DEX Traders continue to build positions while active addresses keep increasing, which demonstrates that network interest and activity levels are rising with the growing momentum.
At press time, Dogecoin price was trading at $0.1661, noting a decline over 4.90% in the past 24 hours. Its market cap stood at $24.69 Billion and ranked 9th in the overall crypto market.
Dogecoin Sees Increased Accumulation: Are Smart Traders Leading the Charge?
Smart DEX Traders within the Ethereum ecosystem invested 142.65 million DOGE while paying an average cost of $0.02428 based on iCrypto.ai data.
These seasoned market participants trust in the token’s current value while establishing their position for future potential growth.
Historically investors who increase their ownership demonstrate price support which indicates future value growth.
Smart trader accumulation shows evidence of supporting DOGE price which could lead to an increase in value.
Data from Santiment indicates that wallets which hold at least 1 million DOGE experienced a 1.24% increase during February after prices declined.
Network activity shows signs of increased participation based on the rise in active addresses which reached new four-month highs.
Large holders usually start accumulating assets at lower prices because they detect undervaluation and plan for forthcoming price recovery.
The rise in active addresses indicates that network engagement increases which could signal strengthening retail interest.
Typically, a surge in adoption instead of speculative behavior during price declines might establish an on-chain base that supports market recovery.
Dogecoin Price Prediction: What’s Next for DOGE?
A recent post by Ali Charts on X highlights that Dogecoin price has been rising inside an ascending channel and was on the tip of the trendline support.
Per the technicals, it was a big test for the bull army and could lead to massive directional move ahead.
Moreover, Trader Tardigrade said that Dogecoin’s Stochastic RSI indicator reveals an end of selloff. According to his analysis, Dogecoin could stop its ongoing correction and may revert toward the $1 mark.
Per the technicals, Dogecoin price capped in a sideways zone and was looking for a breakout move. If DOGE price succeeds to gain bullish momentum and overtakes the $0.2000, a swift recovery toward $0.2230 followed by $0.2500 could be seen in the next few sessions.
However, a drop below the range’s low of $0.1500 could trigger a down move toward $0.1320 followed by $0.1200 in the coming sessions.
Meanwhile, the liquidation data suggests a short covering move soon. Over $1.23 Million of positions have liquidated compared to $789,000 worth of longs in the past 24 hours.
This signals that bulls have maintained their positions, while sellers feel uncomfortable, which might lead to an upward movement in the next few sessions.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.