Will Dogecoin Price Surge to $500 Million with Large Trading Volume and Whale Purchases?
The collapse of Silicon Valley Bank (SVB) due to a series of ill-fated investment decisions has sent shockwaves across the cryptocurrency market. SVB’s investments in US government bonds with long maturity periods suffered substantial losses as interest rates increased. SVB sold its bonds at significant losses, leading to panic among investors and clients. News of a liquidity crunch at SVB sent panic across the world with clients rushing to withdraw funds. Circle, the company that issues the second-largest stablecoin USDC, announced that it had exposure to SVB with $3 billion of reserves stuck in the bank. The news fueled a sell-off in the crypto market with USDT dropping 10% from its dollar peg, and Bitcoin price dropping to sub $20,000, pulling most cryptos down. Dogecoin price stretched the leg significantly below the monthly open and tested support at $0.0625. However, on Monday, Dogecoin shot up 5%, trading at $0.06914, with over $500 million recorded trading volume in 24 hours, representing a 90% increase. Dogecoin investors throughout the week are mainly concerned about securing higher support, preferably above $0.07. Holding above this level is crucial for the immediate resumption of the uptrend. Furthermore, DOGE staying above this level would repair investor confidence in a short-term trend reversal for gains targeting $0.08 and $0.10 respectively. Dogecoin price will likely complete a daily bearish candle close on Monday below $0.07. Nonetheless, all would not be lost for the meme coin, considering the Moving Average Convergence Divergence (MACD) indicator could validate a buy signal anytime from now. On the downside, Dogecoin price lacks robust support as observed from the chart above. A little spike in overhead pressure could force Dogecoin price below $0.06 with potential support at $0.058 before it bounces again.