Dogecoin Hits High Since January 2022 Amid Market Optimism; Whales Accumulate More Tokens
Summary:
Dogecoin's price surged to $0.21 on March 28, marking a 13.35% rise and hitting its highest point since January 2022. This increase outperformed top cryptocurrencies like Bitcoin and Ether, partly due to the prospective X-payment integration. Dogecoin also saw a peak in futures perpetual contracts open interest, reaching a record high of $1.77 billion. This bullish trend aligns with Dogecoin's 2020 fractal pattern, suggesting a potential rise to $0.59 and possible DOGE integration into the X-payment service. Meanwhile, Dogecoin "whales" are accumulating more tokens, further encouraging market optimism.
Dogecoin (DOGE), the well-known meme cryptocurrency, saw a significant increase of 13.35% in price on March 28, peaking at $0.21 - the highest it has been since January 2022. This success outshines many of its high-ranking competitors, including Bitcoin (BTC) and Ether (ETH), based on the 24-hour performance comparison. Several factors are playing a role in this upward trend of Dogecoin's value.
Among the contributing elements for Dogecoin's improvement is the hope of integrating with the X-payment platform. The cryptocurrency has bounced back 79.5% from its low mark of $0.122 on March 20, a recovery partially attributed to Elon Musk, who recently received three additional money transmitter licenses from Illinois, New Mexico, and Oregon to propel his X social media platform's payment service.
With 23 of the requested 32 licenses now granted, as per NMLS Consumer Access, this approval fuels positive speculation around Dogecoin. It is believed that Musk may incorporate DOGE into the X payment service. Though Musk did state in the past that initial stages of X Payments wouldn't involve cryptocurrency, the market analyst Mishaboar suggests there may now be a shift in this approach. Musk also previously hinted at accepting Dogecoin for Tesla vehicles purchase.
An additional contributing factor is the record-high Dogecoin futures perpetual contracts open interest (OI) which reached $1.77 billion on March 28, reminiscent of the peak excitement during the 2021 rally. The high funding rate of 1.18% per week and surging OI implies traders maintain an optimistic outlook about Dogecoin's future value, leading to an increase in buying pressure that potentially amplifies the price rise, as demonstrated in Dogecoin's current progression.
The current upturn in Dogecoin price also corresponds with its bullish fractal pattern from 2020. If the fractal trend remains consistent, Dogecoin's price could potentially reach the $0.59 mark in the upcoming weeks - a 160% increase. Analyst MikybullCrypto even suggests the possibility of seeing the price rise beyond $0.59 citing an Adam-and-Even technical pattern.
This surge in the price of Dogecoin and the overall positive prediction for the future are in sync with the activities of Dogecoin's wealthiest investors, the “whales”. Current data shows an increase in the number of entities holding a minimum of 1 million DOGE tokens, indicating the growing confidence large investors have in foreseeable revenue from the Dogecoin market.
This article refrains from providing investment advice or recommendations. Every investment and trading transaction carries uncertainties and risks. Therefore, it's critical that readers conduct thorough research before arriving at a decision.
Published At
3/28/2024 3:24:10 PM
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