- The dogecoin price may soon skyrocket due to the ongoing recovery trend.
- DOGE whales and the Supertrend indicator shape the mood.
Market analyst Crypto Surf recently revealed that Dogecoin (DOGE)’s 3-month Supertrend indicator has turned bullish. This bullish movement coincides with the accumulation of 1 billion DOGE from Dogecoin whale investors.
The Dogecoin Supertrend is Reversing
The Supertrend indicator is a popular technical analysis tool that helps traders identify market trends and manage risk. It draws a line on the price chart, which acts as a dynamic level of support or resistance.
The line is calculated by adjusting the closing price of the cryptocurrency with a value derived by multiplying the average true range (ATR). Prices above the line indicate an upward trend, while those below indicate a decline.
Supertrend turned green on the 3M scale. $DOGE pic.twitter.com/NULVh258LC
— Surf (@_CryptoSurf) January 2, 2025
The Supertrend indicator has been down since January 2022. The indicator has remained bearish even though Dogecoin rose by 87% in March, followed by a 161% increase in November 2024. However, the indicator turned positive in early January 2025, suggesting that Dogecoin is entering into the bull phase.
Notably, Dogecoin’s supertrend last turned green on the 3-month chart in April 2017. This jump boosted the price by 5.587% to $0.01877 in January 2018 and another 3.837% increase to $0.7390 in May 2021.
If this historical trend repeats itself for DOGE, memecoin is potentially poised for another meteoric rise. After the recent breakout, market experts predicted price targets like $4 for DOGE. At press time, Dogecoin is trading at $0.3398up 2.65% in the last 24 hours and 5.8% in the past seven days.
Dogecoin Whales are back
Another market analyst, Ali Martinez, drew attention to the recent surge in Dogecoin whale activity. Martinez discovered in X publish that whales holding between 10 million and 1 billion coins made massive DOGE transactions on January 2nd. According to the details, the whales bought over 1.08 billion DOGE in 24 hours.
This latest action pushed the cumulative balance of these whales to 46.36 billion tokens, representing 31% of Dogecoin’s supply.
The latest data from the Santiment onchain analytics platform confirmed that these whales sold off some of their holdings in early December 2024. At that time, Dogecoin encountered resistance around $0.4844, which was subsequently corrected.
These Dogecoin whales, which held more than 50 billion tokens, went on sale until December 27, 2024.
For their part, the market remained passive until the new year, when they made the last accumulation. This represents DOGE Whales’ first buying campaign since December and reflects renewed optimism among these prominent investors.
According to CNF reportMartinez previously highlighted the previous purchase of 300 million DOGA by the same whales.
Overall, Dogecoin’s whale comeback combined with the positive Supertrend indicator points to a bullish outlook for the biggest memecoin. Market participants will be watching closely to see what impact it will have on DOGE’s future price trajectory.
