Dogecoin (DOGE), renowned as the world’s largest meme coin, is on the verge of a significant upward movement after experiencing a period of stability. Historically, whales and institutions have shown a tendency to accumulate assets during such sideways price movements. This behavior is reflected in DOGE’s recent price action and on-chain metrics, which paint a bullish picture.
Whale Activity: Large Transactions Surge by 42%
Recent insights from the on-chain analytics firm, IntoTheBlock, have captured the attention of the cryptocurrency community. The firm reports a substantial 42% increase in DOGE’s large transaction volume, indicating significant activity from whales and institutions over the last 24 hours. Such a surge in large transactions often signals a favorable market outlook for both traders and investors, hinting at a potential bullish trend.
Dogecoin Technical Analysis and Upcoming Levels
Technical analysis experts have observed that DOGE has successfully broken out of a bullish descending triangle price action pattern. However, the coin currently finds itself consolidating within a narrow range, facing formidable resistance at the $0.38 level. Should DOGE manage to surpass this resistance and close a daily candle above $0.38, it could potentially rise by 15%, targeting the $0.45 level in the coming days.
If DOGE sustains its position above the $0.45 threshold, there is a strong potential for the coin to reach the $0.57 level in the near future. Presently, DOGE is trading above the 200 Exponential Moving Average (EMA) on a daily time frame, signaling an underlying uptrend.
Bullish On-Chain Metrics
Complementing the technical analysis, DOGE’s on-chain metrics further bolster its bullish outlook. According to data from the on-chain analytics firm Coinglass, DOGE’s Long/Short ratio on Binance is currently at 3.45, reflecting a prevailing bullish sentiment among traders.
The data also reveals that 77% of top traders are holding long positions, while 23% are in short positions. This ratio marks the highest since the beginning of October 2024, underscoring the optimism surrounding DOGE’s prospects.
At present, DOGE is trading near $0.37, having recorded a gain of over 4.15% in the past 24 hours. Concurrently, its trading volume has increased by 8%, indicating heightened engagement from traders and investors amid the prevailing bullish price action pattern.
In conclusion, Dogecoin is showing promising signs of a potential rally, backed by strong whale activity, favorable technical patterns, and robust on-chain metrics. As the meme coin navigates its current resistance levels, all eyes remain on its next directional move, which could prove pivotal for traders and investors alike.
