Can whales push Dogecoin price to $0.08?

• Dogecoin (DOGE) prices retraced the $0.068 mark on Tuesday, just two weeks after falling to a yearly low of $0.057 on October 14.

• Amid the market euphoria, the current distribution of active Dogecoin orders on exchanges raises some early warning signs.

• On-chain data shows that from October 14 to October 25, whale demand for Dogecoin increased significantly, which helped the price to recover.

Dogecoin (DOGE) prices entered a 20% weekly gain range on Tuesday, re-crossing the $0.068 mark. On-chain data analysis studies the impact of increased whale demand on the recent Dogecoin price trend.

After Dogecoin’s price fell to a yearly low of $0.057 on Oct. 14, it lagged behind Solana, and then whale investors rushed out to avoid historic losses. Do they have enough funds to push Dogecoin’s price back to new heights on a sustained basis?

Dogecoin whale trading activity reaches 3-month high

Dogecoin prices quickly rebounded by 20% between October 14 and October 23. On-chain data shows that one of the main driving factors was the renewed interest of whales in the largest meme coin by market capitalization.

As shown in the figure below, when the Dogecoin price was at its yearly bottom, the recorded whale transaction volume was only 599.

But since then, whales have stepped in to avoid greater losses. On October 24, Dogecoin recorded 1,420 whale transactions, the highest since July 25.

The whale trading indicator shows the total number of transactions with daily volume exceeding $100,000. An increase in whale transactions is considered a bullish signal for several reasons:

First, it indicates an increase in buying interest from whale investors, which boosts retail investor confidence. More importantly, the liquidity provided by these large transactions allows traders to execute trades more efficiently and obtain favorable prices. Unsurprisingly, Dogecoin prices quickly recovered by 20% during that time. But as whales continue to increase, it remains to be seen whether the Dogecoin price will maintain its footing or continue to advance positively.

Increasing pending orders suggest bulls are still in control

Dogecoin is currently trading at a 60-day peak, and a key on-chain metric suggests holders may still be able to drive more gains.

Specifically, the latest data from the aggregate order books of 10 cryptocurrency exchanges, including Binance and Coinbase, shows that Dogecoin still has excess market demand despite the current higher price.

As shown in the figure below, traders have placed active buy orders for 782 million DOGE. At the same time, there are only 740 million active sell orders for DOGE.

The aggregate order book chart shows the current price distribution of active buy and sell orders placed by traders for a specific crypto asset. As shown in the above chart, the demand for DOGE currently exceeds the market supply by more than 38 million coins.

When demand for an asset exceeds supply, sellers may be forced to raise prices in order to fill their orders. In summary, whale activity and increased market demand for Dogecoin are important indicators pointing to further price increases in the coming weeks.

Dogecoin Price Prediction: Towards $0.08?

With bulls taking control, Dogecoin price could be on the verge of a rally towards $0.08.

This is also confirmed by the Global In/Out of the Money data, which reflects the historical buying trends of Dogecoin holders. However, the data shows that bulls may face significant resistance in the $0.075 area.

As shown in the figure below, 568,920 addresses bought 59.6 billion Dogecoins at an average price of $0.075. If they choose to sell in advance, it may trigger a bear market reversal.

But if bullish whales continue to buy Dogecoin, the price may reach the predicted $0.08. On the other hand, if the Dogecoin price drops below the $0.05 mark, the bears will be in control. But as observed last week, the bulls may establish strong supportive buying around $0.06.

The above chart shows that there are currently 491,950 addresses holding 5.77 billion DOGE, with the highest price at $0.60. If they hold for a long time, they can prevent the price of Dogecoin from reversing. But if this support level falls, it may trigger a sharp drop below $0.05.