Dogecoin has gained by 7% amid an increased whale activity
The meme token is the biggest gainer in the top ten cryptocurrencies by market cap
DOGE has broken above a descending trendline but is currently overbought
Dogecoin DOGE/USD added more than 7% over the weekend. The jump helped it to become the top gainer in the top 10 crypto bracket. Despite the lack of clear fundamentals, Dogecoin is known to pull moves even during a bearish market. At a time Bitcoin and other major cryptos are on a downturn, investors could be finding an escape through DOGE.
An IntoTheBlock data on Friday showed that whales were accumulating Dogecoin. As of September 23, the number of 100 million to 1 billion DOGE holders rose by 5.13% in a week. DOGE also added 6 new whales in the week. The addition of whales coincided with a low price of $0.05. It means that whales were finding DOGE attractive at the low valuation.
A 4-hour chart outlook shows DOGE on an uptrend
As DOGE is such a new asset, it's yet to be listed on major exchanges. You can still purchase DOGE using a DEX (decentralised exchange) though, which just means there are a few extra steps. To buy DOGE right now, follow these steps:
1. Buy BNB on a regulated exchange or broker, like Binance ›
We suggest Binance because it's one of the world's leading multi-asset trading platforms, an exchange and wallet all-in-one with some of the lowest fees in the industry. It's also beginner-friendly, and has more payment methods available to users than any other available service.
2. Send your BNB to a compatible wallet like Trust Wallet or MetaMask
You'll need to create your wallet, grab your address, and send your coins there.
3. Connect your wallet to the 1Inch DEX
Head to 1Inch, and 'connect' your wallet to it.
4. You can now swap your BNB for DOGE
Now that you're connected, you'll be able to swap for 100s of coins including DOGE.
Source – TradingView
From the 4-hour chart, buyer activity on DOGE increased as the token bottomed below the bearish trendline. A bullish surge followed, pushing the price to break above the trendline. The meme token also broke above the moving averages. A 20-day MA crossover above the 50-day MA supports the upside potential. From a technical perspective, a bullish reversal has been confirmed on DOGE after the breakout.
Buyers will try to take DOGE back to $0.07 after the breakout. However, the ride to $0.07 will be characterized by potential short-term corrections as DOGE is currently overbought.
A retracement towards the breakout zone is an opportunity to buy DOGE. The bullish momentum is strong, but the price is yet to reach the key resistance at $0.07.
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