Dogecoin Maintains $0.27 Floor Following Significant Sell-off by Crypto Whale - Can Dogecoin Recover?
In the rapidly evolving world of cryptocurrency, Dogecoin (DOGE) is gearing up for a week filled with significant events. Here's a breakdown of the factors that could shape Dogecoin's short-term and long-term trajectory.
Whales have been selling off approximately 680 million DOGE over the past 96 hours, potentially dampening the bullish momentum. However, a decisive bounce could pave the way for a rally toward $0.38 and beyond.
The short-term outlook for Dogecoin hinges on whether it can hold the $0.27 support. If it does, a bull flag pattern on the DOGE/USD chart, as observed by Trader Tardigrade, suggests a potential breakout toward $0.43. On the other hand, failure to hold this support may open the door for further retracement.
One of the key events this week is the launch of the REX-Osprey DOJE ETF, the first U.S.-listed Dogecoin ETF, which allocates 80% to Dogecoin or its derivatives. This could unlock sidelined institutional capital waiting for regulatory clarity, according to analyst Harvey Hunter. If the ETF launch coincides with macro catalysts such as rate cuts and corporate accumulation, DOGE could attempt another leg higher, with near-term targets at $0.38 and medium-term projections ranging toward $1.
CleanCore Solutions, a digital infrastructure company, has committed to acquiring 5% of Dogecoin's circulating supply, signaling strong institutional confidence and plans to expand their Dogecoin holdings. With over $160 million worth of Dogecoin in its treasury reserves, CleanCore's Chief Investment Officer, Marco Margiotta, views Dogecoin as a reserve asset and a tool for global remittances.
It's important to note that Dogecoin's massive supply can provide ample liquidity but can also be a challenge in sustaining long-term rallies. Around $1 million worth of Dogecoin will enter circulation daily due to linear vesting schedules, with more than 96 million DOGE, worth roughly $26 million, set to be unlocked this week.
As the cryptocurrency market continues to evolve, Dogecoin's current trading week is one of its most complex due to the simultaneous occurrence of whale selling, corporate accumulation, ETF approval, and token unlocks. Keep a close eye on Dogecoin's price action as these events unfold, and make informed decisions based on the latest developments.
At press time, Dogecoin was trading at around $0.28, up 4.83% in the last 24 hours.
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