Dogecoin (DOGE) Sees Massive Accumulation Ahead of US Crypto Summit – Bullish Breakout Incoming?

Key Insights:

• Dogecoin addresses hit a new ATH yesterday after major accumulation from both whale and retail markets.
• DOGE saw a severe 33% drop from $0.3 to $0.2 in the recent market wipeout.
• Though distant, but a possibility exists that DOGE would be included in the US National Digital Assets Stockpile or the US Strategic Crypto Reserve.
• Fundamentally, Dogecoin's independence serves it well as a fast and secure medium of funds transfer in the crypto world.

Why This Surge in Addresses?

Crypto chart analyst Ali Martinez showed a graph that showed that Dogecoin addresses have reached a record high number of 83.5 million. This indicates that along with whales, retail buyers, too have accumulated DOGE.

In less than 48 hours, the US White House is about to conduct a major crypto summit that could set the direction of the markets in decades to come. Major agendas in the summit include US Crypto Reserve, Crypto Policy, and Regulations.

Inclusion in the US Crypto Reserve

Though it is less likely that the US Strategic Crypto Reserve will add any memecoins, Dogecoin has a remote chance of making it. This is because DOGE is one of the few cryptocurrencies with its own ETF and commands one of the largest communities. Further, Elon Musk's presence inside the US Government is likely to influence decisions. This speculation could have prompted crypto markets to accumulate DOGE.

ETF Expectations

Another reason for the ongoing accumulation is the upcoming Dogecoin ETF by Bitwise. As per the SEC, Litecoin is not a security and since Dogecoin is fundamentally very similar to Litecoin, it might be sage to assume it is also not a security in the eyes of the SEC.

SEC Categorizes Memecoins as Collectibles

Now comes the largest reason. The SEC dropped its will to regulate memecoins last week, calling them tokens with no utility. Hence, Dogecoin is now virtually free of all regulations (except those that govern collectibles like Baseball cards).

What Could Be The Impact?

The surge in addresses is likely to make a huge impact on the price. If this surge sustains, DOGE could see a new ATH soon. This pattern of achieving ATH in addresses followed by a price ATH has been consistent in the market.

Otherwise, there is also a high possibility that this could be a short term accumulation

Surge Expected in DOGE Price

It has been observed in the market that a surge in addresses is followed by a surge in accumulation and then a surge in price. The same pattern happened for Bitcoin, which saw a surge in addresses in the crypto winter followed by a surge in accumulation by retail before ETF and corporates after ETF.

Expected High Volatility After White House Crypto Summit

Dogecoin could see high volatility on both sides after the event. An addition to the US Crypto Reserves would help DOGE attain $0.48 (2024 high) in a matter of days. However, in the case DOGE does not make it to the reserve, it is expected to show a fall till $0.15.

The second situation is less likely, as there is very little speculation that DOGE would make it to the reserve.

Dogecoin Price Prediction For This Week

After a major fall, Dogecoin has been consolidating at $0.2 levels. At press time, DOGE was trading at $0.21 with a 2.3% gain in the last 24 hours.

A look at its charts reveals that from $0.35, DOGE has been under a clear downtrend. Lately, it has reached the support at $0.195. If this support breaks, DOGE could see a downfall to $0.093. On the upside, DOGE could see $0.3 arriving soon if an accumulation-led bounceback hits the market.

A bounceback seems more likely in Dogecoin's case because of the rising RSI (40 at press time), which indicates a strong momentum in the price.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.