Final Dip? Dogecoin Correction Could Precede A Record Surge—Analyst

Christian Encila

4 months ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Popular meme-based cryptocurrency Dogecoin (DOGE) has just seen a dramatic downturn that makes investors wonder about its future course.

Driven by market volatility of Bitcoin (BTC), DOGE’s value dropped by around 20% over the past week. DOGE currently trades at $0.2551; its market value is $38.09 billion and its trading volume is $3.42 billion.

Whale Accumulation Signals Investor Trust

On-chain data shows that despite the current downturn, big investors—often referred to as “whales”—have grabbed the chance to amass significant amounts of DOGE.

Whales have specifically accumulated 750 million units of the meme coin during this downturn. Usually preceding big price swings, this large accumulation shows a strong conviction in the long-term possibilities of Dogecoin.

The current price of $0.25 is an ideal opportunity for investors who are ready to ride the wave of a possible recovery, according to some analysts, while others think DOGE may drop to about $0.17.

Whales seized the opportunity during the recent dip, buying 750 million #Dogecoin $DOGE! This is a strong sign of confidence in the market! pic.twitter.com/LyjIuZCF15

— Ali (@ali_charts) February 6, 2025

Dogecoin: Historical Patterns Point To Potential Growth

Analysts claim that Dogecoin’s current market sentiment is a reflection of its 2017 bull cycle. Alongside similar corrections during that period, there were impressive rallies that led to new all-time highs.

If this historical pattern is accurate, DOGE may have reached its local low and is getting ready for a significant ascent. Technical indicators also reveal hints of buildup and possible trend reversals, therefore supporting this positive view.

DOGE is currently trading at $0.25. Chart: TradingView

Market Sentiment And Future Outlook

The possible comeback of DOGE depends much on the general attitude of the Bitcoin market. Should Bitcoin settle and the mood in the market changes, Dogecoin might be set for a significant increase.

Recent whale growth and historical assessments support this idea. Investors are closely watching the market, expecting that DOGE will regain its previous high prices and possibly hit new records.

Temporary Hiccup For DOGE?

Investors might worry about the recent drop in Dogecoin’s price, but there are other things to consider. Factors like large investors buying more, previous price patterns, and potential market stability indicate that this decline could lead to strong recovery.

As usual, investors should be cautious and undertake thorough research before choosing what to buy.

But a change in the general market vibe or higher demand could contradict the negative view, thus monitoring it price movement in the following few weeks is quite important for deciding its main direction.

Featured image from Dogster, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.