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- Neptune Digital Assets just added 1 million Dogecoin to its portfolio.
- The hype around Dogecoin ETF further drives a positive price rally prospect.
The price of the Dogecoin (DOGE) memecoin has remained muted despite the announcement of a massive purchase from an institutional investor. This has raised concerns and speculations about whether a rally is in sight for the memecoin.
DOGE Remain Muted Despite Positive Ecosystem News
On Tuesday, Canadian-based blockchain firm Neptune Digital Assets announced the acquisition of 1,000,000 DOGE tokens. Neptune said it purchased the assets on December 27 via a strategic derivative trade at an average price of $0.37 per token.
For context, the 1,000,000 DOGE token translates to roughly $266,000 at the current market price. Usually, such investments from institutional players lead to price stability and even higher prices for a cryptocurrency.
However, the announcement from Neptune has failed to drive momentum in the Dogecoin market. At press time, DOGE has experienced a 1.52% decline in the last 24 hours, setting the price at $0.2668. Also, the daily trading volume is down 53.4% to $2.9 billion. This suggests that the price increase is driven by short-term speculative trades rather than water-tight buying pressure.
Moreover, the Chaikin Money Flow (CMF), another technical indicator, demonstrates DOGE’s low demand among market participants. Currently, DOGE’s CMF is below the zero line at -0.06.
Notably, the CMF indicator measures an asset’s buying and selling pressure over a period. Traders and investors can use the metric to identify trends, anticipate reversals, and make informed decisions.
A CMF value below zero indicates selling pressure, while a value above zero indicates buying pressure. Hence, DOGE’s current CMF value shows that the selling pressure outweighs the buying pressure. This scenario suggests a bearish trend and potential downside for the leading memecoin.
Dogecoin’s Latest Movement, ETF, and Future Expectations
DOGE has traded below a descending trend line, and its value has dropped 33% since January 18. The market sentiment is typically bearish, and sellers remain in control when an asset trades below the descending trend line. Therefore, Dogecoin’s ability to break above the trend line would signal a potential trend reversal.
However, DOGE could drop to $0.24 if demand weakens further and the downward pressure on DOGE strengthens. If the bulls fail to defend the $0.24 level, DOGE may fall further to $0.19. On the other hand, a rise in DOGE demand would invalidate this negative forecast. In this scenario, the coin’s price may rise to $0.32.
Aligning with this expectation, market analysts have forecasted bullish outcomes for DOGE. As previously mentioned in our report, market analyst James CryptoGuru predicted that the memecoin could skyrocket towards $3.
Furthermore, crypto analyst Dogecoin Rise forecasted that DOGE’s price will surge by 10,000%, citing historical trends and recent market behavior.
One major event that could fuel this rally is the approval of a Dogecoin ETF. As noted in our earlier post, Bitwise recently filed for a DOGE ETF, raising excitement in the Dogecoin community.
