Advertisement
Advertisement

Dogecoin (DOGE) Price Surges By 9% –Can it Reach $0.1 Before 2024?

By:
Ibrahim Ajibade

Dogecoin (DOGE) price hit $0.082 on Thursday, despite the downturn in the broader memecoin markets. On-chain analysis explores the major catalysts.

Dogecoin price analyis

In this article:

 Price Insights:

  • Dogecoin (DOGE) price hit $0.082 on Thursday, November 30, as the bulls regained control following last week’s market downturn. 
  • Dogecoin has experienced an unusually high demand from corporate entities and high net-worth investors in the past week. 
  • The rising Whale Transactions could propel DOGE above the elusive $0.09 resistance zone. 

Dogecoin (DOGE) price hit $0.082 on Thursday, November 30, growing 9% in the last 7 days, despite the downturn in the broader memecoin markets. On-chain analysis explores the major catalysts behind Dogecoin’s recent growth performance. 

Dogecoin is in High Demand Among Corporate Investors

The memecoin markets shrank over the past week. But while Shiba Inu (SHIB) and, PEPE flipped negative, Dogecoin price has stopped just short of a double-digit gains, increasing from $0.075 to $0.083 over the last seven trading days. 

However, a closer inquest into the underlying on-chain data trends shows that corporate entities and high net-worh investors have increased their demand for Dogecoin.  

The Dogecoin network recorded a total of 1,450 Large Transactions  on November 29, according to the latest reading from on-chain data tracker, IntoTheBlock. This is a 55% increase from the 937 Large Transactions recorded on November 25. 

This increase in whale demand appears to have triggered the 9% DOGE price rally in the past week, even while other mega-cap meme tokens trended negative. 

Dogecoin (DOGE) Large Transactions vs. Price | Source: IntoTheBlock
Dogecoin (DOGE) Large Transactions vs. Price | Source: IntoTheBlock

In crypto terms, Large Transactions, alternatively called Whale Transactions, is an on-chain metric that tracks the trading activity of corporate entities and high net-worth investors on a blockchain network. Essentially, it tracks the number of confirmed Dogecoin transactions that exceed $100,000 in value within a trading day.

The 54% increase in Large transactions over the past week, could be a significant bullish catalyst for DOGE price. 

Firstly, when whale investors increase their demand, it encourages strategic retail traders into to mirror their trades.

More importantly, the Large Transaction provides much-needed market liquidity. This ongoing increase in corporate demand, could tilt he momentum in favor of bullish swing day traders looking to execute DOGE trades at favorable prices.

DOGE Price Forecast: Road to $0.1?

From an on-chain standpoint, the rising whale demand is one of the fundamental factors driving the on-going DOGE price rally.  With these indicator still on the uptrend, it puts Dogecoin price in good stead for further gains. 

The Global In/Out of the Money (GIOM) data, which groups the current DOGE holders according to their entry prices, also confirms this bullish price prediction.

It however, shows that the bears must scale initial resistance at $0.50 to be confident of a parabolic breakout. As depicted below, 581,965 holders had bought 8.65 billion DOGE at the average price of $0.084, If those investors exit early, they could trigger a DOGE price correction. 

But if the bulls can scale that sell-wall, Dogecoin price will likely reclaim $0.1 as predicted. 

Dogecoin (DOGE) Price Prediction | GIOM data | Source: IntoTheBlock
Dogecoin (DOGE) Price Prediction | GIOM data | Source: IntoTheBlock

Still, the bears could negate the positive prediction if DOGE price dips below $0.075. But, in that case, the 481,050 holders that bought 42.3 billion DOGE at the average price of $0.076 could offer initial support.

If those investors HODL firmly, Dogecoin price will likely avoid a larger downswing.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

Did you find this article useful?

Advertisement