Dogecoin is testing investors' nerves! With significant fluctuations, Elon Musk's favorite crypto could experience a spectacular turnaround or a sudden drop. Will there be a bullish explosion or an imminent collapse? Prepare for turbulence in the Dogecoin market!
Currently, Dogecoin is trading around $0.17, marking a 2.75% increase over the last 24 hours. However, the token reached a high of $0.175 during the day before facing strong resistance and reversing the trend. At the same time, trading volume has decreased by 10%, indicating lower participation from traders and investors compared to the previous day.
Source: TradingView
From a technical perspective, DOGE appears to be following a bearish trajectory as it tests the breakout of an uptrend. According to analysis, if Dogecoin closes a four-hour candle below the $0.162 level, a significant price decline could follow in the days ahead.
Currently, DOGE is trading below its 200-day exponential moving average on the daily chart. This indicates a strong bearish trend and weakened price momentum. These factors may explain a more moderate participation from players in the crypto market.
However, traders seem to have a bullish outlook evidenced by their significant positioning in futures contracts. According to on-chain analysis firm Coinglass, traders currently hold $25.60 million in long positions, compared to only $8.50 million in short positions.
Source: Coinglass
These bullish bets, more than double the bearish bets, indicate that the bulls are firmly in control. They are betting on a significant rebound for Dogecoin in the days to come.
Although the short-term technical outlook appears mixed, the traders’ appetite for DOGE hints at significant upward potential if certain key technical levels are surpassed. The upcoming days will be crucial in confirming or contradicting these contrasting perspectives surrounding the most popular memecoin.
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Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
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