Dogecoin prices have remained stable in recent weeks, even with reports indicating that large investors are accumulating the cryptocurrency.
As of Sunday, Dogecoin (Doge) was priced at $0.1743, a roughly 36% increase from its lowest point this year.
On-chain data from Santiment highlights that big investors continue to buy more coins. Those holding between 1 million and 10 million Dogecoins have increased their total from 10.3 billion in March to 10.4 billion now—an increase of 200 million.
In the same vein, holders with 100 million to 1 billion coins raised their stakes from 23.4 billion in March to 255.2 billion. Such whale accumulation, particularly during a bear market, is generally seen as a good sign for assets.
These large investors seem to be betting on the potential approval of a Spot Doge ETF by the Securities and Exchange Commission. Given that Dogecoin operates on proof of work and isn’t classified as a security, the chances of approval appear favorable.
Dogecoin’s prices are stagnant for a couple of reasons. First, there’s evidence suggesting a shift from traditional meme coins to newer options in the Solana ecosystem. Different coins, like Fartcoin and Popcat, have seen sharp increases.
Secondly, Elon Musk’s hints about his intention to limit his work associated with government efficiency, especially after a drop in Tesla shares, may also impact the sentiment around Dogecoin. While this won’t have a direct effect on the coin, it could unsettle some investors.
Dogecoin Price Technical Analysis
Technical analysis reveals that Dogecoin’s price has been relatively flat over the past few weeks. A symmetrical triangular pattern is forming, with the two intersecting lines nearing convergence.
This triangle formation follows a drop from $0.4815 in December. Consequently, there’s a risk that a bearish pennant pattern may emerge.
Thus, Dogecoin’s price might weaken soon, potentially finding support around $0.10—a 43% drop from its current position. This bearish scenario would only be dismissed if prices rise above $0.2796, which is the 50% retracement level.
Dogecoin, created in December 2013 by Billy Markus and Jackson Palmer, was inspired by the “Doge” meme featuring a Shiba Inu dog. Built on Litecoin’s codebase, it has gained popularity, particularly due to endorsements from Tesla CEO Elon Musk.
