In a unique turn of events, the crypto by the world has witnessed a new phenomenon: institutional investors are beginning to embrace the once-meme-inspired digital asset, Dogecoin (DOGE). This development has sent shockwaves through the market, fueling speculation and reigniting interest in the coin that was initially created as a lighthearted parody.
Recently, over several weeks, DOGE has been bearish. Today, May 13th, DOGE currently trades at $0.1446, a in the last 24 hours and a market cap of $20.9 billion. Impressively, DOGE’s trading volume in the last 24 hours has also surged 50%, reaching $860 million.
Tesla’s Adoption Paves the Way
The adoption of Dogecoin by Tesla, the renowned electric car company, has played a pivotal role in propelling the crypto into the mainstream. Elon Musk, the company’s CEO and a vocal supporter of Dogecoin, announced that the company would allow . Musk, known for his unconventional approach, believes that Dogecoin is better suited for transactions than Bitcoin due to its faster transaction times and lower fees.
Whales and Institutional Investors Make Waves
The recent surge in Dogecoin’s price has been fueled by the entry of whales and institutional investors into the market. In a striking example, a large trader removed a staggering $19 million worth of DOGE from the Robinhood trading platform, signaling a potential bullish trajectory for the cryptocurrency.
According to market analysts, this unprecedented institutional interest in Dogecoin is a first in the coin’s history, and it could potentially indicate a significant shift in the crypto landscape. The involvement of deep-pocketed investors has injected a new level of legitimacy and confidence into the Dogecoin ecosystem, attracting a broader range of market participants.
DOGE Technical Analysis
From a technical perspective, Dogecoin’s recent price movements have painted an optimistic picture for the future. After finding support around the $0.12 level, DOGE has shown resilience in the face of bearish pressures, indicating a potential reversal in the market sentiment.
A bullish flag pattern on the daily chart broke down past its support to test heavier support at the $0.12500 zone down and created resistance at $0.16918. A breakout above the $0.16918 resistance level, combined with a close above it, could propel DOGE towards testing the recent high of $0.22888. However, if the bullish momentum doesn’t build, the price may retrace to the $0.12500 level, providing an attractive entry point for investors.
Indicators such as the narrowing Bollinger Bands suggest a period of decreased volatility, while the Relative Strength Index (RSI) at 45 points shows the recent bearish activity and momentum.
Analysts Bullish on Dogecoin’s Future
Renowned analysts have expressed optimism about Dogecoin’s prospects, with Ali Martinez stating that the crypto has broken out of a descending triangle pattern, similar to previous cycles. Martinez believes that the current 47% price correction , echoing the sentiment of many market observers.
