Originally published on: March 02, 2024
Dogecoin has seen a remarkable increase in price this week, soaring by around 70% in response to a bullish trend in the cryptocurrency market. With this surge, many are speculating that Dogecoin may be gearing up for even more gains in March, supported by a combination of technical and fundamental factors.
The recent spike in Dogecoin’s price coincides with a rise in holdings among its top investors, often referred to as “whales.” The number of addresses holding over 100,000 DOGE tokens has grown by 0.7% since the start of the year. Conversely, the number of entities with balances exceeding 1 million DOGE has seen a slight decrease after February 12.
These significant holdings suggest that these addresses, likely belonging to exchanges, are accumulating Dogecoin rather than engaging in active trading. This accumulation signals a strong sentiment towards the cryptocurrency.
The surge in Dogecoin’s price comes ahead of the fourth Bitcoin halving set for April 19, 2024. History shows that similar rallies occurred before the first and second Bitcoin halvings, with DOGE price surging by 200% and approximately 50% respectively.
Investors often turn to alternative investments like memecoins in anticipation of increased market activity following a Bitcoin halving. Speculation drives this behavior, with traders seeking to capitalize on the supply shock associated with Bitcoin.
Dogecoin’s next target points to its 0.236 Fibonacci retracement line, a critical level that has shifted from support to resistance over time. As we head into March 2024, Dogecoin could potentially see a 25% increase, reaching $0.18 by month-end, fueled by positive market sentiment and Bitcoin’s recent surge.
Please note that this article does not offer investment advice. Readers are advised to conduct their own research before making any investment decisions. For more insights and market updates, subscribe to our Markets Outlook newsletter.
