Dogecoin may rise 20% in May, as DOGE whale holdings reach record levels

Dogecoin has outperformed the crypto-market over the last month. Its gains were roughly 18% against the market’s gain of 10%, due to a combination of whale accumulation and bullish charts that suggest a bottom.

30 day returns for DOGE/USDT in comparison to the total crypto market capital. Source: TradingView

Takeaways from the conference:

• As large trades peaked for six months, DOGE whale holds reached a new record.
• DOGE’s triangle break-out target is $0.131 with $0.088 being the main invalidation level.

Doge whale stocks reach new heights amid price rally in April

Dogecoin Wallets with at least one hundred million DOGE held a record of 108.52 billion Doge, valued at approximately $11.6 Billion, by late April. In mid-April this figure was just under 107.95billion DOGE. Santiment.

Dogecoin Whale transaction count and ownership. Source: Santiment

This accumulation occurred at the same time as DOGE’s price increase of 23.5%, suggesting that large holders supported this move.

Weekly DOGE/USDT chart. Source: TradingView

The whale activity has also increased. Santiment reported 739 Dogecoin transactions worth over $100,000 on April 28. This was the most in six months. It coincided with launch of 1Shares’ physically backed Dogecoin ETP on XetraThe leading German electronic trading platform.

Triangle breakouts with 20% potential upside

The DOGE price is now in the breakout phase of a pattern that appears to be an descending triangle.

Source: TradingView DOGE/USDT Weekly Chart. TradingView

In the classical analysis of technical charts, triangles descending indicate a persistent pressure to sell. Although these structures are usually resolved to the downside in most cases, there can be some upside breakouts, particularly when the accumulation trend is broad.

BTC, for example, formed a multimonth triangle descending in 2021 following the China crackdown on mining.

BTC/USD Three-Day Price Chart TradingView

Structure was bearish but the price broke through the trendline descending near $35,000, which triggered a pressure that culminated in a surge of over $52,000 within the next few weeks.

The same rule can be applied to DOGE charts, and the upside target in May is around $0.131. This represents a 20% increase from its current price. This level is in line with DOGE’s 200-week moving average (200 SMA, blue line).

Source: TradingView DOGE/USDT Weekly Chart. TradingView

This would raise Dogecoin’s average purchase cost for large wallets that hold more than 10,000 DOGE, which is currently around $0.115. The aggregate cost of DOGE (black) would be cleared around $0.132.

Prior to extended bullish cycles, the return of more investors into profit, and an ease in selling pressure, has been accompanied by a reclaiming this cost basis.

DOGE price realized by wallet size Source: Glassnode

A rejection at current levels around the resistance of the EMA (20-week green) would make the case for a bullish breakout weaker. A pullback of this magnitude could cause DOGE to revisit its May local low, near $0.088.

The article has been produced according to Cointelegraph. Editorial Policy This is only intended to be used for informative purposes. This is not investment advice. The risks associated with all trades and investments are high. We encourage readers to do their own independent research.