Dogecoin (DOGE) has seen a lackluster performance in September, with its price remaining stagnant at around $0.06. While other projects have experienced significant gains, the social sentiment surrounding DOGE has turned bearish. This could potentially signal an opportunity for whale investors to step in and buy the dip.
On-chain data analysis reveals that whale investors have maintained a neutral stance throughout September, with their daily transactions ranging between 14 billion and 19 billion DOGE. This decline in large transaction volumes suggests that Dogecoin whales have reduced their trading activity this month, impacting liquidity in DOGE spot markets.
Furthermore, the weighted sentiment for DOGE has trended deep into negative territory since the beginning of September, indicating growing discontent among holders. When weighted sentiment is negative alongside a neutral price movement, strategic investors may view it as an ideal time to enter the market.
Considering the current bearish sentiment in the memecoin markets, whale investors could be incentivized to buy the dip in Dogecoin. If this scenario plays out, a target of $0.08 could be achievable for bullish traders. The on-chain market depth chart also supports this positive outlook, as market demand for Dogecoin at current prices has surpassed supply.
However, it’s worth noting that some strategic traders have placed sell orders for 153 million DOGE at a price of $0.075, which could slow down any potential rally. Nevertheless, if whale investors increase their trading activity as anticipated, they could overcome this resistance level and push the price towards $0.08.
On the flip side, if bearish pressure persists, Dogecoin may reverse towards $0.050. However, there are buy orders for 187.2 million DOGE at a price of $0.056, indicating strong market demand that could trigger a rebound. Should the support level at $0.050 break, it would mark the first time in 2023 that Dogecoin falls below this threshold.
In conclusion, the current social sentiment and trading activity of whale investors in Dogecoin could play a significant role in its price movement. If whales decide to take action and buy the dip, a price target of $0.08 is feasible. However, if bearish pressure continues, the price may decline towards $0.050.
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