Ali Martinez, a leading cryptocurrency analyst and trader, said on Wednesday that they recorded profits after Dogecoin (CRYPTO: DOGE) hit their target at the top of a price channel.
Plan Comes To Fruition
Martinez had flagged $0.1172 as their “technical target” on April 22. DOGE hovered around $0.09 at the time, implying a 30% upside target.
The dog-themed cryptocurrency eventually hit the target on Wednesday, after which Martinez booked a profit.
Analyzing Dogecoin’s Latest Spike
Dogecoin has lately been on the rise, up 4.75% over the week and 22% over the month. Institutional investments most likely played a significant role.
Weekly inflows into spot exchange-traded funds have surged, with $627,400 flowing into Grayscale Dogecoin Trust ETF (NYSE:GDOG), 21Shares Dogecoin ETF (NASDAQ:TDOG) and Bitwise Dogecoin ETF (NYSE:BWOW) this week alone, according to data from SoSo Value.
Interestingly, on-chain activity declined during this period. The weekly active users on the Dogecoin network dropped from 116,300 for the week ending May 2 to 112,000 in the current week, according to Token Terminal.
What Next For Dogecoin?
With influential traders like Martinez taking profits, does that signal an upcoming DOGE correction?
The Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, typically the 12-period and the 26-period, flashed a “Buy” signal for DOGE, according to TradingView.
Conversely, the Stochastic RSI, a technical indicator measuring Relative Strength Index strength, suggested a “Sell.”
Price Action: At the time of writing, DOGE was exchanging hands at $0.1107, down 4.28% in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: Akif CUBUK on Shutterstock.com
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