Dogecoin (DOGE) has been making significant gains in Q4, with a rise of over 230% at the current press time. A crypto trader named 52K Skew has projected a potential 200% rally for DOGE, estimating that the meme coin could reach $1.16 based on Fibonacci retracement levels. Despite the current sell pressure and profit-taking from miners, there seems to be more demand for DOGE, which could potentially boost prices even further.
Miners have been offloading their holdings, with over 20 million DOGE tokens being sold during the recent rally. However, this sell-off may have been offset by an increase in demand from whales and other retail traders. The rise in active addresses to a yearly high of over one million users over the weekend indicates a heightened market interest in DOGE. Additionally, whales have been accumulating over 150 million DOGE tokens in the past week, demonstrating a strong demand for the meme coin.
Despite intense profit-taking from retail traders, with non-empty wallets dropping by over 24K in a single day, analytics firm Santiment sees this as a bullish cue for DOGE. A decrease in the overall number of wallets could indicate FUD and capitulation from novice traders, leading to larger whales and sharks buying up the liquidated coins for the long term. With DOGE’s price still holding above key support levels, there is potential for the meme coin to continue its upward momentum despite the ongoing profit-taking.
In conclusion, DOGE’s performance in Q4 has been impressive, with a significant increase in price and market interest. While miners have been selling their holdings, the demand from whales and retail traders seems to be outweighing the sell pressure, potentially leading to further price rallies for DOGE. With a projected 200% rally, the meme coin has the potential to reach $1.16, presenting an exciting opportunity for traders and investors in the crypto market. The recent uptick in active addresses and whale accumulation indicate a positive sentiment towards DOGE, suggesting that the meme coin could continue its upward trajectory in the near future.
