Dogecoin reached above $0.28 for the first time since January on Sunday, reaching its highest recorded price since February. After hitting a peak of $0.28777, the memecoin faced strong resistance from bears. Now, trading at $0.26049, Dogecoin faces uncertainty as buyers and sellers struggle to drive momentum.
The world’s first memecoin is on a 2.4% decline over the last 24 hours after facing the $0.28-zone rejection. However, larger timeframes still display strong bullish performance, as $DOGE is up by 35% in the week, and over 80% over the last thirty days.
There are two major factors that can be attributed to DOGE’s surge as of late. Firstly, Bit Origin — a Nasdaq-listed firm — announced that it would raise half a billion dollars, creating the first institutional treasury based on Dogecoin. Companies like MicroStrategy and BitGet have paved the way for institutional crypto adoption, and the news that this trend could latch on to Dogecoin was certainly well-received by the community.
Secondly, Shopify recently introduced a plugin that allows online stores on the platform to offer $DOGE payments, giving the memecoin a solid utility case as a currency. Since this announcement, the memecoin surged by over 40%, signaling strong investor confidence in the fact that Doge can become available to over 120,000 merchants on Shopify.
Whales Accumulating Doge?
According to recent data from CoinMetrics, Dogecoin’s holder distribution ratio has declined by 6% since April, indicating a notable shift in ownership concentration.
The drop suggests increased whale accumulation, as smaller addresses now hold even less relative to the top 1% of DOGE holders. While this imbalance can be perceived as market centralization, it still showcases that institutions and large investors appear to be accumulating Dogecoin.
Price Structure
Price action aficionados may rejoice in the fact that $DOGE appears to be forming a “double bottom” formation on a 1-day timeframe. If it plays by the book, the asset could be poised for a strong mid-term bullish trend.
If price retests the neckline resistance and rejects bearish momentum, it could be a signal that this “double bottom” formation will play out.
But let’s move on from T.A. and analyze the current momentum.
RSI is currently at 79 points, and appears to be coming down from ‘overbought’ levels. While this by itself means close to nothing, it does suggest that momentum could be cooling off.
Meanwhile, MACD is still showcasing moderate bullish signs, as the MACD line remains above the signal line with expanding green histogram bars.
As for volume, trading activity noticeably increased during DOGE’s recent upward leg. While the initial spike aligned with price movement, the current tapering trend suggests that momentum may be entering a wait-and-see phase.
Dogecoin Price Recap
- Current price at $0.26049, after peaking at $0.28777
- Up over 80% in the past 30 days
- Whales accumulating as holder distribution falls 6%
- Double bottom formation on the daily timeframe supports the bullish idea
- RSI cooling from 79, MACD still leaning bullish
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