The Dogecoin, often seen as a mere meme, might just shock the markets. Various technical indicators are showing signs of a spectacular surge in the coming days. With strategic whale accumulation and a renewed interest from retail investors, all signals are indicating bullish momentum. Could a +100% spike be on the horizon?
Despite a recent 50% rally, Dogecoin (DOGE) has been consolidating near a critical resistance level of $0.25 over the past three days. This consolidation phase is capturing the attention of traders and investors, as highlighted by the on-chain analysis tools Coinglass and IntoTheBlock.
Source: IntoTheBlock
According to IntoTheBlock data, the high volume of DOGE transactions, often associated with whale and institutional activity, has surged by 41.12% in the last 24 hours. This sudden volume increase indicates growing interest and confidence in the meme coin, hinting at a potential for continued upside.
Additionally, the number of daily active addresses on the Dogecoin network has also increased by 34.91% over the same period, reflecting this bullish momentum. Coinglass data reveals a significant rise in bullish bets on Dogecoin. Currently, the long/short ratio on the DOGEUSDT pair on Binance stands at 3, indicating three long positions for every short position. This reflects a highly optimistic sentiment, with 75.08% of Binance traders holding long positions on DOGE.
Despite these encouraging on-chain metrics, the DOGE price seems to struggle to make headway. It is currently trading around $0.2276, down by 8.40% over the past 24 hours. During this period, its trading volume has also decreased by 10%, indicating lower participation from crypto investors compared to the previous day.
Technical analysis shows that DOGE has been consolidating near the key resistance level of $0.25 for three days. This raises the question of whether it will repeat past price patterns or if this is simply a routine correction.
Indeed, during its previous ventures at this level, DOGE experienced significant selling pressure leading to price declines. The question then is whether history will repeat itself or if the bulls will succeed in breaking through this resistance this time around.
If DOGE continues to consolidate and closes a daily candle below $0.22, a bearish momentum could take hold in the coming days. However, a trend reversal and a close above $0.255 could trigger a bullish rally. This could potentially propel DOGE towards its next resistance level at $0.30, representing a 20% gain.
Before investing, it is recommended to thoroughly analyze the market and adjust your strategy accordingly.
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