Crypto: Here's Why Dogecoin Could Bounce Back Dramatically

Dogecoin is once again attracting the attention of large-scale investors. Despite a recent price drop, whales, these institutional investors or individuals owning large amounts of cryptos, have massively accumulated the memecoin. This strategic movement, supported by favorable technical indicators, suggests a significant rebound potential for this iconic meme currency.

Rapid accumulation of crypto by whales

According to data from the market intelligence platform IntoTheBlock, Dogecoin has recently recorded large transactions totaling $1 billion. These transactions indicate a strong interest from whales in this crypto. Contrary to what one might expect after a price drop, these large-scale investors took advantage of the dip to buy more Dogecoin.

Net flows to exchanges have been negative over the past seven days, confirming that whales have been accumulating tokens rather than transferring them to platforms to sell. This buying behavior during the dip reflects a strong conviction in Dogecoin’s rebound potential. Furthermore, this massive accumulation by major Dogecoin holders could play a significant role in stabilizing and recovering the price, which has already begun to show signs of recovery.

Rebound indicators and future prospects

Besides whale accumulation, several technical indicators signal a rebound potential for Dogecoin. The market value to realized value (MVRV) ratio shows that the crypto is currently undervalued. Crypto analyst Kriss Pax recently predicted a significant price increase for Dogecoin, highlighting that the relative strength index (RSI) presents an optimistic configuration for the near future.

Pax recommends this moment as a buying opportunity, asserting that the memecoin should not drop below its current price levels. Meanwhile, Crypto Kaleo, another analyst, predicts that Dogecoin could reach 1 to 2 dollars in this bullish cycle. Kaleo bases his forecasts on historical trends, noting that Dogecoin has often experienced parabolic rises after periods of stagnation. He also mentions the possibility of a brief drop to $0.08, similar to the 30% correction that occurred in August 2020 before skyrocketing.

Finally, the growing dominance of altcoins in the market could usher in an altcoin season, during which Dogecoin is expected to benefit from a massive rally. Technical signals and the behavior of major investors indicate a strong probability of recovery and substantial gains for Elon Musk’s favorite crypto in the near future.