Dogecoin Whale Transactions Pump 50% Higher, This Technical Indicator Flashes 'Buy Signal'

Traders predict bullish momentum for Dogecoin DOGE/USD after Elon Musk teased that the meme coin could be a payment option for Starlink.

Musk’s comment came just days after he expressed interest in Dogecoin being used for items sold in the Tesla merch store.

What Happened: After Musk replied to Dogecoin trader ‘Sir Doge of the Coin' that he has a good point in using Dogecoin for Starlink, crypto chart analyst Ali Martinez predicted a potential price rebound for the meme coin.

He noted a bullish divergence against the RSI on the 4-hour chart, with the TD indicator flashing a buy signal.

#Dogecoin is showing a bullish divergence against the RSI on the 4-hour chart, with the TD indicator flashing a buy signal. These positive signs suggest a potential price rebound for $DOGE on the horizon. pic.twitter.com/kxlQQK7ses

— Ali (@ali_charts) September 2, 2024

For the unfamiliar, Musk took to X to state that Starlink's bank accounts have been frozen despite it being a separate company with different shareholders. He also added that there were no laws broken by Starlink.    

Another trader, Trader Tardigrade drew parallels to Dogecoin's historical performance where the meme coin spiked significantly right after the second low. He said that currently, Dogecoin has formed the second low after the last touch to the support.

Also Read: Dogecoin ‘Keeps Bleeding’ But Risk/Reward Ratio Now Favorable, Trader States

Why It Matters: IntoTheBlock data noted a 2.6% rise in Dogecoin's large transaction volume and a 50% jump in transactions greater than $100,000 in a single day.

Google Trends data for interest in Dogecoin stood at 16 for the week of Sept. 1 to 7, the lowest since the week of July 7 to 13 when it was at 15.

Price Action: In the past 24 hours, DOGE is trading 1.6% higher at $0.09839.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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