Technical and on-chain analysis note significant influence of high market cap investors on the Dogecoin price.
Last week, Dogecoin price rallied an impressive 25% in just a few hours. A contrarian forecast was issued proposing that the uptrend move was more of a sucker’s rally than the start of a new bull run. The $0.084 level was noted as an extreme level of interest for sidelined bears to jump back into the market.
Shortly after the contrarian piece was published, the DOGE price fell in penny-from-Eiffel style back into the $0.067 price range, losing 25% of its market value in just a few hours. A textbook smart money fakeout forecasted ahead of time for subscribers at FXStreet.
Dogecoin price currently auctions at $0.068. A sudden bullish spike above $0.07 was witnessed during the London session recovering 5% of losses. However, the New York bears came back with full force and have managed to reject the $0.07 access to the world’s favorite meme coin.
DOGE/USDT 3-Day Chart
Looking underneath the hood, it appears that large holding whales have influenced Dogecoin price throughout the year. For instance, a record-high influx of 15.5 billion dormant tokens came into the circulating market in October when the DOGE price traded at $0.25.
The world’s notorious meme coin fell sharply weeks after losing over 75% of its market value. On June 18, an additional 5.15 billion came into circulation at the $0.067 price level. DOGE price has not been able to successfully hold grounds above the level for more than a few days throughout the summer.
Lastly, in February of 2022, Dogecoin saw a yearly record high of 818,000 active wallets in one day when the price traded at $0.116. It appears that DOGE has a strong influence near this level, as last week’s bearish forecast also utilized $0.112 as the bearish invalidation point.
Santiment’s Price, Active Wallets & Dormant Circulation Indicator
When combined, it appears that the Dogecoin price is on a tight leash by highly influential large-cap market players. Thus, this thesis will remain bearish until $0.112 is breached. If the bulls can breach this level, they could induce an impressive 300% rally, targeting $0.25. Until then, $0.02 DOGE price remains a possibility.
In the following video, our analysts deep dive into the price action of Dogecoin, analyzing key levels of interest in the market. -FXStreet Team
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