As the accumulation of Dogecoin on the exchanges reaches its peak, investors are strengthening their bullish expectations. Popular crypto exchange Robinhood is one of the biggest whales, with one-third of the total Doge supply. Analysts are sharing scenarios where $0.18 could be the point of price increase based on decreased circulating supply.
Analysts expect Dogecoin price to rise
Dogecoin’s price may start to rise soon as investors from all over the world buy DOGE. Accumulating meme coins has removed a significant portion of the total token supply from circulation. A third of the Dogecoin supply is stored in the wallets of the Robinhood exchange. On behalf of the investors there, the exchange stores escrow meme coins in eight wallets. When investors keep Dogecoin in their wallets, the meme coin is taken out of circulation and the total amount goes down. A drop in supply is among the factors that can cause a Dogecoin rally.
Robinhood keeps $5 billion in Dogecoin in their wallets. That’s 42.3 billion DOGE stored at eight different addresses. The entire supply of Dogecoin consists of 31.90% of the wallet balance. According to some analysts, the reasons arising from all this contraction in supply are preparing the appropriate ground for the rise.
Analysts evaluated Dogecoin’s trend and suggested a rally
FXStreet analysts predicted that Dogecoin price could rise by 45% if the trend turns bullish. According to analysts, the $0.18 level will be the breakout point for Dogecoin price. The mass demand zone started below $0.18 in October 2021, making $0.18 a crucial psychological threshold for Dogecoin price. After falling below $0.18, the price of the meme coin dropped every day. As a result, economists believe that if the price of Dogecoin rises above $0.18, it will show positive momentum and rise 35%.
Dogecoin has maintained its bearish momentum since May 2021 and has lost more than 80% from its $0.7376 ATH. This trend was briefly broken on January 14th by Elon Musk when Tesla announced that it would accept Dogecoin as a payment method. DOGE gained more than 30% in about 1 hour on that date. It remains up to date that the meme coin will sign deals with well-known brands like SpaceX and McDonald.
You can find other recent developments that we have quoted as Cryptokoin.com.
38866
