Is Dogecoin Ready for the Rally?

DOGE could explode to $0.50 if it breaks above a certain level, one analyst said.

The biggest meme coin recently entered a green wave in the cryptocurrency market, with its price rising to a 10-day high.

The whales are waking up and the real parade can begin.

More profits in the future?

The cryptocurrency sector, especially the meme coin niche, has experienced significant growth in the past 24 hours. The undisputed leader Dogecoin (DOGE) rose by 6% daily, the market capitalization once again exceeded 15 billion dollars.

Considering the whales' recent stock, the OG meme coin may be poised for another boost. Popular analyst Ali Martinez, a group of investors, received 470 million DOGE in the last 72 hours. The figure is worth approximately $47 million (calculated at current rates).

Following the latest buying spree, whales have increased their total assets to 36 billion coins, representing 23.5% of Dogecoin's circulation.

Such accumulation is considered significant for the price as it reduces the amount of tokens on the open market and increases confidence among the main holders. Whalers are known as seasoned investors who don't often jump in without enough knowledge and research, leaving unanswered questions about whether they know something we don't. After this, smaller players can be encouraged to join the ecosystem, thereby injecting new capital.

Some industry participants support the bully attitude. X user trader Tardigrade DOGE says it is “breaking out” of a certain setup before a “big pump” in history. For their part, CoinQTS described $0.125 as a “key level to watch”, predicting a rally to $0.50 if the price breaks above $0.13.

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The recent DOGE exchange net flow can also be placed well with the bulls. The data shows that outflows have consistently outpaced inflows over the past few weeks as investors shift from centralized platforms to self-sustaining mechanisms, reducing immediate selling pressure.

Conversely, Dogecoin's Relative Strength Index (RSI) should serve as a warning that a short-term correction may be on the horizon. The technical analysis tool measures the speed and magnitude of price changes, to evaluate possible reversal points. It runs from 0 to 100, ratios above 70 are considered carry territory, anything below 30 is considered a buying opportunity. Currently, the RSI is around 76.

The potential effect of Elon Musk

It's no secret that the world's richest man wants Dogecoin and has publicly acknowledged it for years. Not long after, Musk confirmed that the platform's upcoming payments feature, X Money, would go live next month. It is expected to allow users to send and receive money through X, with a strong focus on integrating digital assets into the effort.

X user FuelMask wondered what would happen if DOGE were made the default currency for the new feature, suggesting that such a move could push the price to $0.50 or even $1.

Many analysts at the Post believe that Dogecoin will not play such a central role in X Money, with some describing the token as “a joke like all meme coins”.