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Dogecoin Price Prediction as $600 Million Trading Volume Comes In – Are Whales Buying?

Source: TradingView

The Dogecoin price has dropped by 1% today, falling to $0.085902 in the past 24 hours as the wider cryptocurrency market falls by around 2%. This level means the meme token has risen by 2.5% in the past week, but has declined by 7% in a fortnight and by 3 in the last 30 days.

DOGE's movements come as its 24-hour trading volume passes $600 million, with this figure actually spiking to $1 billion earlier this morning. However, while some holders may be hoping that whales are returning to the cryptocurrency, the available evidence suggests that bigger traders may be preparing to sell.

Dogecoin Price Prediction as $600 Million Trading Volume Comes In – Are Whales Buying?

DOGE's indicators don't paint an entirely encouraging picture at the moment, given that they appear to indicate further short-term losses. The coin's relative strength index (purple) has dropped just below 50 in the past few hours, meaning it has plenty of space left to fall before it becomes oversold.

Source: TradingView

Correspondingly, DOGE's 30-day moving average (red) has plateaued in relation to its 200-day (blue), meaning that the token could be on the brink of falling further. 

Given that trading volume has increased in the past day or so, further price movements could indeed be imminent. And some observers have remarked that at least some whales have resumed accumulating DOGE, following its recent losses.

However, while there is some evidence of accumulation, there appears to be more evidence of whales moving DOGE to exchanges, in preparation for selling. For example, the past few hours saw one large holder move 60 million DOGE (about $5 million) to Coinbase.

The past few days have brought numerous other examples of whales moving DOGE. Most notably, February 17 saw a wallet that had been dormant for over two years move DOGE worth $28 million to a new address.

Other recent examples include movements of 31.1 million DOGE, 28 million DOGE, 60 million DOGE, 60.3 million DOGE, 10.2 million DOGE, and so on. While such transfers could relate to individuals consolidating their holdings, they nonetheless raise the possibility that numerous whales could be preparing to sell.

This would fit with DOGE's dips since early February, and it's likely that more dips may be coming in the near future. 

That said, the more distant future still looks good for DOGE. And as ever, the main reason for this is Elon Musk, with the Tesla and Twitter CEO remaining Dogecoin's most visible and vocal supporter.

Recent instances of Musk lending his supporter to DOGE include a viral tweet posted last week of his Shiba Inu dog, Floki, a tweet which caused a momentary spike. Likewise, he also attended Super Bowl LVII while decked out in a Dogecoin T-shirt, something which was probably seen by millions of people (including Fox owner Rupert Murdoch, who he was set next).

While these stunts may seem trivial, they all provide credibility to an ongoing expectation that Twitter will, sooner or later, introduce dogecoin payments. 

Such expectations have been fed by a recent Financial Times article that showed Twitter is moving ahead with its digital payment plans. They've also been fed by hints last year that he may consider introducing DOGE payments to Twitter, although recent reports have made no explicit mention of the meme token.

As such, there remains a real chance that DOGE could benefit from some extremely big adoption news in the not-too-distant future. If it does, its price will surge enormously, perhaps returning to its all-time high of $0.731578, set in May 2021.

In terms of the here and now, more sober analysts may propose a 2023 target for DOGE $0.13, as suggested by a recent report by crypto-exchange Changelly. If DOGE can make it to such a level, it would undoubtedly prepare the ground for further gains to come, particularly if the global economy and wider market becomes more bullish.

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Alternatives to Dogecoin

While DOGE may not be due a massive rally just yet, there other high-potential crypto projects that may be more promising in the shorter term (as well as longer-term). We've compiled them in this list of the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.

The list is updated weekly with new altcoins and ICO projects.

Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.