- A crypto trader projected a likely 200% rally for DOGE.
- There was more demand than the current sell pressure, which could boost prices.
Dogecoin [DOGE] is undoubtedly the best performer among legacy meme coins in Q4, with over 230% gains as of press time.
However, crypto trader 52K Skew believes the dog-themed meme coin could have more uptrend momentum.
Using the Fibonacci retracement levels between the three-year support at $0.05 and the previous ATH (all-time high), he projected DOGE could eye $1.16. If so, that would be a whopping 200% surge from the current $0.39 readings.
Source: 52K Skew
DOGE’s demand outpaces selling pressure
However, at press time, the short-term outlook saw massive supply overhang from traders booking profit and miners offloading their holdings.
According to Santiment data, miners offloaded over 20 million DOGE tokens amid the massive rally. This was illustrated by the cliff in supply held by miners (red line) from 2.13 billion to 2.11 billion.
Source: Santiment
However, miners’ sell-off could have been absorbed by an uptick in demand from whales and other retailers.
Whales scooped over 150 million DOGE tokens in the past week alone, translating to over 7x demand, more than the selling pressure from miners.
Besides, miners still held over 2 billion DOGE, which could signal bullish conviction for further price rallies.
Additionally, the recent retracement saw active addresses peak to a yearly high of over one million users over the weekend. This indicated elevated market interest in the memecoin.
Source: Santiment
Read Dogecoin [DOGE] Price Prediction 2024-2025
With non-empty wallets dropping by over 24K in a single day, Santiment flagged intense profit-taking from retail traders.
The analytics firm also suggested it could be a bullish cue for DOGE.
“When a network’s overall amount of wallets declines, it is a sign of FUD & capitulation from novice traders that is often a bullish indicator for the coin’s price (since those liquidated coins are likely being bought by larger whales & sharks who are hodling for the long-term”
That said, with DOGE price holding above key support, the memecoin still had extra room to run despite the ongoing profit-taking.
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