Why Dogecoin price is still running to $2.
The price of Dogecoin (DOGE) has increased around 3% in the same period to rest at $3.62 trillion, which in the broader cryptocurrency market, despite the recovery, fell 3.5% to $0.3663 in the last 24 hours.
Although DOGE is trading 33% below the multi-year high of $0.4846 reached on December 8, 2024, several factors are more supportive for the world's largest memecoin.
DOGE/USD Daily Chart. Source: Cointelegraph/TradingView
An increase in whale activity increases the value of DOGE
One of the main drivers behind today's Dogecoin price increase is the increased activity of whales holding large amounts of the cryptocurrency.
Whale transactions involving Dogecoin have increased significantly in the last 24 hours. Data from Santiment shows that whaling activity is increasing with stocks ranging from 10 million to one billion DOGE.
The trend on the chart indicates that the DOGE well movement ended on January 21. These whales have raised approximately 590 million Doge tokens (worth $214 million at current prices) in the last 24 hours. Same time frame.
Number of wallets between 10M and 1B DOGE. Source: Santiment
This flurry of buying activity suggests that large investors stocked up on DOGE when the price dropped to $0.33 on January 21st, suggesting that the group expects higher prices in the future.
Launch the official US DOGE website
Also boosting investor sentiment was the Dogecoin logo on the newly established US Department of State Efficiency (DOGE) website, which US President Donald Trump established by executive order after his inauguration on January 20.
The price of DOGE increased by 13% within minutes of the website going live on January 21st.
Although the website did not display the Dogecoin logo, the event brought unprecedented visibility to Dogecoin, tying it to a government initiative led by Elon Musk, known for his affinity for memecoin.
Meanwhile, speculation is growing around the Dogecoin exchange-traded fund (ETF) filing and approval. The crypto market has seen more ETF filings following the resignation of former Securities and Exchange Commission Chairman Gary Gensler, which has fueled speculation that a DOGE ETF could soon be approved following the approval of Bitcoin and Ethereum ETFs.
Source: Cointelegraph
Eric Balchunas, senior ETF analyst at Bloomberg, said the DOGE ETF “could take over the market after approval in early April.”
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ETF approval provides a regulated investment vehicle for traditional investors, potentially increasing Dogecoin's exposure and legitimacy in the wider financial world, thereby increasing demand and driving its value higher.
DOGE price patterns range from $0.95 to $2
Independent crypto trader and investor Chandler highlighted that DOGE's recent price action is part of an accumulation trend that has been playing out since 2021.
Mayer's multiple bands show the price is right where it was in January 2021, “stacking between the yellow and orange lines,” the analyst said:
A break above the red line today will send $DOGE to $0.95.
DOGE/USD Weekly Chart. Source: Chandler
With the markets brewing, WSB Trader, an anonymous crypto commentator, said that memecoin's drop to $0.33 on January 21, before DOGE's price went to $1, was a good dip for investors.
Source: WBS Merchant Rock
Meanwhile, technical analyst Trader Tardigrade Mikubull offered a more ambitious outlook that included a possible exit from the bullish flag at the $2 target.
“Dogecoin has formed a bullish flag on the 2-day chart. This $DOGE bullish flag pattern target measures above $2.
DOGE/USD Two Day Chart. Source: Trader Tardigrade
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
