Dogecoin price is hot! Soaring around 70% in the past week, this surge was driven by a bullish trend across the crypto market . This momentum gives rise to the potential for further DOGE price increases in March, influenced by technical and fundamental indicators.
Dogecoin accumulation
The recent rise in DOGE prices coincided with an increase in DOGE holdings among the wealthiest investors, nicknamed “whales”. For example, the number of addresses holding more than 100,000 DOGE tokens has increased 0.7% since the start of the year.
Meanwhile, the number of entities with balances of more than 1 million DOGE has decreased slightly since February 12. Given the substantial holdings, these addresses likely represent crypto exchanges, indicating traders are starting to prefer holding DOGE rather than making active trades. This behavior indicates strong accumulation.
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Memecoin Fever Ahead of the Bitcoin Halving
The Dogecoin price surge appears to be occurring ahead of the fourth Bitcoin halving event scheduled for April 19, 2024. Interestingly, this price rally is similar to the price increases prior to previous Bitcoin halving events in May 2020 and July 2016.
It's worth noting, DOGE price surged 200% ahead of the first Bitcoin halving, and around 50% before the second, as shown below.
In general, traders tend to look to alternative investments such as memecoins for the potential for higher short-term profits, anticipating that the halving will drive the overall market higher. This behavior is driven by speculation and the desire to capitalize on the increased market activity associated with Bitcoin supply shocks.
Just like Dogecoin, other top memecoins, including Shiba Inu (SHIB), Pepe (PEPE), and Bonk (BONK), also saw substantial gains in the days leading up to the Bitcoin halving.
Also Read: Business with Dogecoin (DOGE): This is the List of Companies that Accept DOGE!
Understanding Bitcoin Halvings
Bitcoin halving is an event that occurs every four years on the Bitcoin network. This is the process of halving the reward given to Bitcoin miners for validating transactions and adding new blocks to the Bitcoin blockchain. This halving process is designed to make the supply of Bitcoin increasingly limited as time goes by.
Technically, halving occurs every 210,000 blocks mined, which takes about four years to achieve with a consistent mining rate. When a halving occurs, the new block reward received by Bitcoin miners is halved from the previous amount. For example, before the halving, the block reward was 12.5 Bitcoins, and after the halving, it was 6.25 Bitcoins.
The impact of the Bitcoin halving is:
1. Increased Value
History has shown that after each halving, the value of Bitcoin tends to increase. This is due to unchanged or increased demand, but reduced supply, as Bitcoin mining becomes more difficult and rewards are smaller for new miners.
2. Effect on Miners
The halving affected the income of Bitcoin miners, as they received half of the Bitcoins they received previously. For miners who don't pay attention to operational costs, this can reduce their profits or even make some miners unprofitable.
3. Sensitivity to Price Action
Halvings often trigger price volatility, as investors and traders react to changes in the new, more limited supply of Bitcoin. This can cause significant price fluctuations in the short term.
Also read How to Buy Crypto:
Dogecoin Technical Analysis Shows Potential for Further Upside
DOGE's next upside price target appears to be at the 0.236 Fibonacci retracement line, as shown below.
This price point was fundamental support during the downtrend from May 2021 to November 2021, indicating its important role in the market's bearish phase. After turning into a resistance level in December 2021, this threshold has become a strong barrier. Until now, this level is still a crucial resistance point.
By March 2024, Dogecoin could potentially experience a 25% increase to reach $0.18, supported by strong buying enthusiasm in the memecoin space, driven by Bitcoin's recent surge. This optimistic trend suggests Dogecoin may reach its target by the end of the month.
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH ), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Dogecoin (DOGE): Definition, History and How It Works
Dogecoin (DOGE), a Popular Meme-Based Cryptocurrency
How to Pay with Dogecoin: A Guide to Using DOGE for Transactions
DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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