Dogecoin (DOGE) Price Predictions: Whale Activity and Bullish Technical Signals Hint at a Potential Rebound

Despite Bitcoin’s recent stabilization after a sharp crash, the broader crypto market remains in a neutral phase, leaving Dogecoin vulnerable to price fluctuations.

Dogecoin (DOGE) price is showing signs of recovery after a steep decline in the past week. The meme coin has dropped by over 16% during this period, largely mirroring the broader crypto market's instability. However, upon closer examination, some key market developments could influence DOGE's price in the coming days.

Institutions Flock to DOGE as Price Drops: A Tale of Accumulation

Crypto analyst Ali Martinez recently shared some interesting insights regarding the price movements of Dogecoin. According to Martinez, large investors, or "whales," have been accumulating DOGE during the recent price dip.

Institutions Buying Dogecoin (DOGE) as Price Drops to Key Levels: Analysis

Institutions Buying Dogecoin (DOGE) as Price Drops to Key Levels: Analysis

According to the analyst's findings, these whales acquired an impressive 460 million DOGE during this period. This buying activity suggests that some institutional investors view the current price levels as an opportune moment to bolster their crypto holdings.

As a result of this buying pressure, DOGE's price has managed to remain above critical support zones, largely defying the broader market downturn. Furthermore, if DOGE rebounds to the level of $0.35, an approximate sum of $766.45 million in short positions could be liquidated.

This event could potentially trigger a "short squeeze," leading to a chain reaction of buying activity and driving up the price in the process. Notably, if Dogecoin experiences a price surge, it could provide an optimal entry point for traders seeking to capitalize on the short-term price rally.

Technical Analysis Points to Potential Bullish Crossover, Institutions Buying Dogecoin (DOGE) as Price Drops to Key Levels: Analysis

Institutions Buying Dogecoin (DOGE) as Price Drops to Key Levels: Analysis

A closer examination of Dogecoin's technical indicators reveals some promising signs for the meme coin's future price action.

According to Trader Tardigrade, a renowned crypto analyst, a potential MACD bullish crossover is emerging on DOGE's 4-hour chart. This crossover usually indicates a short-term shift in momentum from bearish to bullish.

If this crossover materializes, it could present an opportune moment for traders to enter long positions, anticipating a potential rally in DOGE's price.

Moreover, Tardigrade highlights Dogecoin's adherence to the Gaussian Channel pattern, which is widely recognized as a bullish technical formation.

After exiting the channel during a red phase, DOGE proceeded to retest the mid-channel line, a occurrence that is often associated with the beginning of a new upward trend.

According to Tardigrade's analysis, two potential bull runs could follow this development.