Dogecoin Whales splurged to buy 200 million DOGE after a slight drop

Between November 20 and 23, whale Dogecoin (DOGE) reduced its holdings — in the same week as the cryptocurrency hit its yearly high. This reduction in ownership...

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Between November 20 and 23, whale Dogecoin (DOGE) reduced its holdings — in the same week as the cryptocurrency hit its yearly high. This reduction in ownership caused the DOGE price to drop to $0.36.

However, the situation is different now, as these key players have continued to buy. Here’s how this could affect the value of Dogecoin in the future.

Big Guys Don’t Let Dogecoin Drift Without Buying It

According to Santiment, the balance of addresses holding between 1 million and 10 million DOGE fell to 10.39 billion on November 23 but has since increased to 10.59 billion.

This suggests that Dogecoin whales took advantage of the weekend price drop, scooping up around 200 million coins. At DOGE’s current price of $0.42, this equates to $84 million worth of trading volume. Whale accumulation usually indicates an easing of selling pressure.

So, this boom in trading activity suggests that Dogecoin’s price may be preparing to surpass the current $0.42 level. If this happens, the prediction that this Meme Coin Coin could reach 1 USD could come true.

Accumulation of Dogecoin whales — Dogecoin address balance. Source: Santiment

In addition, the Average Directional Technical Index (ADX) has continuously increased. ADX is a technical analysis tool that helps traders evaluate the strength of a trend, whether bullish or bearish.

When ADX crosses 25, it signals strong momentum in a certain direction. On the contrary, below 25 shows a weak trend. On Dogecoin’s daily chart, ADX has increased to 68.00, hinting at a significant uptrend. With the trend rising, this indicates that the price of DOGE could continue to climb.

Directional strength of Dogecoin — Dogecoin Average Direction Technical Indicator. Source: TradingView

DOGE Price Prediction: $1 Still Possible

A closer look at the daily chart shows that Dogecoin price has encountered resistance at $0.43. This decline is one of the reasons why the cryptocurrency cannot rise to $0.50. It is also important to mention that trading volumes have decreased, making it difficult to continue the steady trend.

Meanwhile, it seems that bullish investors are defending the $0.36 area. If sustained, DOGE price could climb up to $0.48. In a highly optimistic scenario, Meme Coin Coin could explode towards $1 USD.