Dogecoin price has been on an upward trend in the past few weeks. The price has bounced back from the oversold region.
The crypto is slowly regaining strength. Traders and analysts have set high price targets expecting the crypto to rise to $8-$10 soon.
There are several reasons that can explain why the community is becoming more and more optimistic about Dogecoin.
Dogecoin Price Action and the Path to $10
Over the past few weeks, Dogecoin has moved out of the oversold zone, a bullish signal. Technical analysis, shows that the cryptocurrency is now entering a zone that is expected to show an upward trend.
Past experience shows that once Dogecoin rises from the oversold territory it jumps to the overbought region indicating that demand and buying pressure has risen.
Technical analysts are expecting Dogecoin to trade at the $8-$10 price levels in the current market cycle.
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This potential price increase is backed by the wider crypto market, as there has been a rise in confidence for meme coins.
Dogecoin price could have a parabolic rise, as the sentiment in the market becomes more positive.
However, experts note that corrections and consolidations may occur before the coin gets to the target levels.
Whale Activity and Long-Term Confidence in Dogecoin
Recent events that took place in Dogecoin have brought focus on the behavior of large investors again.
Among the most significant activities, there was the transfer of 870 thousand DOGE by a dormant whale. This wallet had not been used for over 11 years and was able to generate a 64,249% ROI.
While the transaction in itself was not accompanied by a drastic change in prices it is indicative of a change in perception among investors.
This is because such old wallets can be reactivated which is a sign of confidence in the market.
Furthermore, the big players, or ‘whales’, have been seen to be buying more DOGE when the price falls.
Statistics reveal that within the last one month, whales have purchased more than 550 million DOGE.
This accumulation trend is a major reason that backs the bullish prediction for Dogecoin, because it indicates that investors are confident in Dogecoin’s future.
Market Consolidation and the Path to $3 and $18
Furthermore, another analyst has echoed similar sentiments with regards to the long-term price targets.
The key level that Dogecoin is targeting is $3 which is within reach if the coin maintains its upward trend from the recent decline.
A revival from the present prices can pave the way for appreciable returns for investors, with some experts predicting a 634% increase.
For instance, in the most bullish case, Dogecoin was projected to appreciate to as high as $18.
However, this goal is considered to be more of a long term prospect, and it is contingent on market conditions and the sentiment of investors.
Nevertheless, the experts are expecting a big pull-back before reaching this higher price level. At press time, Dogecoin price was at $0.40, which is a 1% increase in the last 24 hours.
With a market capitalization of $59.33 Billion, the cryptocurrency has recorded a 24 hour trading volume increase of 69.75% which stands at $12.26 Billion.
