TL;DR

Despite a significant price drop, increased whale activity and the potential approval of a spot Dogecoin ETF suggest a possible DOGE price reversal.

The Bears Might Be Stepping Back

Recent weeks have been challenging for the cryptocurrency market, with many leading digital assets experiencing double-digit price losses. Dogecoin (DOGE), the leading meme coin, is no exception, suffering a nearly 40% monthly decline, currently trading around $0.16 (according to CoinGecko).

DOGE Price, Source: CoinGecko

However, several factors suggest a potential short-term bullish turnaround. Analyst Ali Martinez notes that investor sentiment towards DOGE is "at its most negative in over a year," historically a precursor to significant price reversals. He suggests this negativity presents a contrarian investment opportunity.

Further supporting this view is increased whale activity. Martinez reports that large investors have acquired over 1.4 billion DOGE tokens in the last 24 hours. This reduction in circulating supply could fuel a price rally, particularly if demand remains strong. This accumulation also signals confidence in DOGE, potentially attracting smaller investors.

Finally, Dogecoin's Relative Strength Index (RSI) is currently in oversold territory (around 30), a technical indicator often associated with impending price rebounds.

Anticipation of an ETF

Another potential catalyst for DOGE price appreciation is the possibility of a US-approved spot Dogecoin ETF. SEC approval would allow investors easier access to DOGE, potentially increasing demand and driving up the price. Several companies, including Grayscale and Bitwise, have filed applications for such an ETF, some of which have been acknowledged by the SEC. Polymarket estimates a 62% probability of approval before year-end.

The post 3 Reasons Why Dogecoin (DOGE) Could Turn Bullish Again Soon appeared first on CryptoPotato.