DOGE traders eye a breakout to $0.35: check forecast

DOGE, the native coin of the Dogecoin ecosystem, is the second-best performer in the top 10 over the last seven days, only behind Binance’s BNB token.

The coin is up 11% during that period and has room for further growth, as memecoins tend to rally hard during bullish periods.

With Bitcoin setting a new all-time high of $126k and Ether breaking above $4,700, several altcoins are preparing to embark on their rallies.

DOGE could be heading towards a key psychological level over the coming days as the bullish momentum grows. 

Whales add 30 million DOGE tokens to their wallets

One of the primary catalysts behind every rally is the increased accumulation by whales.

DOGE has experienced heavy accumulation in recent days, with mid-tier and large holders adding over 30M tokens to their wallets.

Adding coins to their wallets means that the whales are anticipating a massive rally for the cryptocurrency.

Speculation that the SEC could approve DOGE’s addition to 401(k) is a major catalyst that could spur the memecoin’s price higher in the near term.

If the SEC approves the addition of DOGE to retirement funds, the coin could gain massive mainstream adoption, and its price could soar higher.

The current market conditions have seen investors switch to more risk-based assets.

In an email to Invezz, XBTO’s Chief Investment Officer, Javier Rodriguez-Alarcón, stated that risk appetite is back on the rise.

Broader crypto prices rose around 9% this week, though overall values remain well below where they started the year, a sign that the rebound is still selective. Rodriguez-Alarcón added:

“Investors are becoming more willing to take on measured risk but continue to favour larger, more liquid assets over smaller speculative tokens, reflecting a cautious shift back toward quality. The rally has coincided with growing expectations of monetary easing: the probability of a US interest rate cut in October has jumped from 89% to 98%, with markets now pricing in four additional cuts by June next year.”

With investors’ risk appetite resuming, risk-based assets like DOGE could become one of the winners in the current cycle.

DOGE eyes the $0.35 psychological level

The DOGE/USD 4-hour chart is bullish and efficient after Dogecoin added 11% to its value in the last seven days.

The momentum indicators switched bullish since the start of the month.

The RSI of 57 shows that buyers are currently in control.

However, it needs to go higher if DOGE stands a chance of breaking above the $0.30 barrier.

The MACD lines are also within the positive territory, indicating a bullish bias.

If the bullish trend continues, DOGE could break above the September high of $0.30889 in the near term.

An extended rally would allow it to hit the $0.35 psychological barrier over the next few days.

However, failure to overcome the $0.30 resistance would see DOGE retest the recent low of $0.23.

The bulls would likely defend this support level, as failure to do so would see DOGE drop below $0.20 once again.

The post DOGE traders eye a breakout to $0.35: check forecast appeared first on Invezz