The cryptocurrency market is experiencing a notable correction as it heads into the 2024 U.S. presidential election. Bitcoin has dipped below the $70,000 mark, prompting renewed selling pressure across the altcoin market. Dogecoin (DOGE), which is following a similar trend, is currently trading at $0.15 and is hovering at a crucial support level that could enable a rally towards $0.20.
Dogecoin Aims for $0.20 as Analyst Identifies Potential Bottom
Italian crypto analyst Eliz recently shared an optimistic yet cautious perspective on the cryptocurrency market’s outlook for the coming week. He suggests that most major altcoins, including Dogecoin, are beginning to form a temporary bottom following the recent market downturn.
Investors are urged to remain patient and vigilant, particularly as macroeconomic factors such as the upcoming election may influence market sentiment. Eliz’s analysis indicates a range setup for Dogecoin, suggesting that a strong entry point could materialize if a “mega range” solidifies.
As of the latest update, Dogecoin is trading at $0.15, seeking support from an ascending trendline and the $0.14 level. Should buyers manage to regain momentum around the $0.143 mark, DOGE could initiate a recovery that drives the price up to $0.20, representing a potential gain of approximately 30%.
Whale Accumulation Signals Potential Upside
Data from Santiment shows that large holders, defined as those with wallet sizes between 10 million and 100 million coins, have increased their accumulation significantly, rising from 14.66 billion to 18.97 billion coins—a growth of 30%. This aggressive accumulation by large holders often indicates expectations of future price appreciation, which could enhance positive sentiment and attract further interest from the broader market.
Historical patterns indicate that whale accumulation frequently coincides with major market bottoms and supports long-term upward trends.
Conversely, if sellers continue to defend the $0.18 to $0.15 supply zone, Dogecoin’s rally could face significant obstacles, potentially leading to a stalled price recovery. As the market navigates this correction, the behavior of both large holders and broader market trends will be crucial in determining the next steps for Dogecoin and other altcoins.
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