Dogecoin (DOGE) price reached a three-month peak of $0.076 on Wednesday, bringing its 30-day gains to the 23% mark. On-chain analysis examines how the growing market demand could shape DOGE price action in the days ahead.
Dogecoin price has emerged as one of the top performing assets in the meme coin market this week, leading the likes of PEPE and Shiba Inu (SHIB) on the biggest gainers’ chart. Can the bulls extend the rally toward the elusive $0.1 territory?
Dogecoin Whales Invest $2 Billion in Last 30 Days
Dogecoin has benefitted immensely as crypto whale investors switched attention to the meme coin markets in recent weeks. According to data from IntoTheBlock, coins in custody of whales holding at least $100,000 worth of DOGE have increased from $7.65 billion to $9.35 billion between Oct. 8 and now. This implies that the crypto whales have increased their investment by $1.7 billion over the past month.
The whale balances chart tracks real-time changes in the number of coins large investors hold. The blue trend line above illustrates how the whales increased their holding by $1.7 billion within the past month.
Typically, such a significant increase in whales’ holdings is a clear indication of the large institutional investors’ confidence in DOGE price prospects.
Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know
Retail Market Participants Have Also Started Buying
In addition to the growing whale demand, Dogecoin retail market buy orders have now surpassed supply in the spot markets. The aggregate order books data from 10 crypto exchanges, including Binance and Coinbase, the bulls have placed active orders to buy 872,000 DOGE around the current prices. Meanwhile, the traders have only placed a total of 810 million DOGE up for sale.
The aggregate order books chart summarizes all buy/sell orders that traders currently have listed across different centralized crypto exchanges. Typically, when buy-orders exceed the number of sell-orders, as observed above, it implies there’s a dominant buying momentum across the Dogecoin markets.
Hence, with fewer DOGE coins currently up for sale relative to demand, buyers may need to increase their bids to fill their orders quickly. This could inadvertently drive DOGE price further toward the $0.1 market in the coming week.
Read More: 11 Best Sites To Instantly Swap Crypto for the Lowest Fees
DOGE Price Prediction: Road to $0.1?
The on-chain stats analyzed above show that the investor sentiment surrounding the DOGE is still largely bullish.
The Global In/Out of the Money data, which is an on-chain representation of current Dogecoin holders’ historical buying trends, also validates this prediction. It shows that the $0.081 area is the most significant resistance above the currency DOGE price.
As depicted below, 740,950 addresses had bought 18.05 billion DOGE at the maximum price of $0.081. If they exit their positions early, this could set off an early Dogecoin price retracement.
But if the crypto whales keep buying Dogecoin, the price rally could reach $0.1, as predicted.
Read more: 7 Must-Have Cryptocurrencies for Your Portfolio Before the Next Bull Run
Alternatively, the bears could invalidate that prediction if the Dogecoin price sinks below the $0.050 mark. But in that case, the initial support wall around $0.065 will likely prove daunting.
The chart above shows that 436,210 addresses currently hold 14.96 billion DOGE bought at the maximum price of $0.066. If they keep HODLing, they will likely prevent a major downswing in DOGE price.
Disclaimer
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