Dogecoin positions for rebound, but here’s what’s holding it back

DOGE is well-positioned to capitalize on the ongoing volatility for a potential rebound.
While some factors support this outlook, others may require more time to align.

As a seasoned researcher with years of experience navigating the cryptocurrency markets, I have seen my fair share of bull and bear cycles, and I must say, the current state of Dogecoin [DOGE] is quite intriguing. The recent dip notwithstanding, DOGE’s resilience in a market where other coins are stumbling suggests a strong potential for a rebound.

In contrast to dropping 2% weekly, Dogecoin [DOGE] is currently outfront, with competitors struggling with a more substantial 10% decrease. Due to a recent surge in value, Dogecoin has surpassed the $0.14 mark, a level it hasn’t attained for approximately two months.

At the moment, Dogecoin (DOGE) is valued at approximately 0.1383 USD. The price fluctuations of DOGE seem to echo those of Bitcoin, leading some financial experts to speculate whether Dogecoin continues to divert funds from Bitcoin in this unpredictable market.

If this scenario holds true, it’s possible that a hidden pattern will drive Dogecoin beyond its earlier resistance thresholds, despite the current pessimistic market trend.

DOGE might be squeezing on a rebound

Currently, Dogecoin finds itself at a pivotal moment. There’s a substantial pool of available funds at approximately $0.144. If Dogecoin manages to surpass this level, it could lead to a wave of short sellers being forced to purchase DOGE again due to margin calls. This mass buying could in turn cause the price to rise significantly.

In the latest surge of Bitcoin (BTC) approaching $70K, Dogecoin (DOGE) saw daily growth over 7%, outperforming most meme coins that failed to gather momentum. Even Ethereum was unable to keep pace during this period.

These factors have certainly fostered growing optimism among traders.

Dogecoin positions for rebound, but here’s what’s holding it back

Source : Coinglass

Over the past day, long positions have been more popular than short ones in the futures market, as traders predict and hope for an upturn. With Dogecoin’s market capitalization increasing by 2% to $20.22 billion, investors holding long positions are encouraged by the possibility of a recovery, positioning Dogecoin to potentially profit from the current market fluctuations.

If Bitcoin maintains its current pricing pattern, leading to substantial increases in the value of top alternative cryptocurrencies on a weekly basis, historical trends might resurface, providing an opportunity for Dogecoin to surge and possibly reach new resistance points surpassing $0.143.

During times of increased market risk, this tactic often involves traders finding high-cap altcoins like DOGE more appealing as potential alternatives to established cryptocurrencies such as Bitcoin. While it’s not unrealistic to propose that DOGE could attract investment funds away from Bitcoin, it’s important to remember that market trends can be unpredictable.

Something might be sabotaging their efforts

Dogecoin’s potential for recovery seems strong due to active spot trading where people are buying during price drops. However, the unpredictable activity of major investors in the order book might slow down its advancement.

Dogecoin positions for rebound, but here’s what’s holding it back

Source : IntoTheBlock

For several days now, major investors, notably those referred to as “whales,” who hold an impressive 42% of the Dogecoin supply (over 66 billion tokens), have moved into a distribution stage. This transition seems to correspond with the recent 7% drop in price, resulting in DOGE trading at approximately $0.131.

Read Dogecoin’s [DOGE] Price Prediction: 2024-2025

Despite a brief setback in sales, DOGE experienced a 4% increase the next day, yet it’s yet to regain its full strength post the substantial decline caused by selling pressure.

In other words, we need to exercise care because while there’s hope for a recovery and Dogecoin’s volatility could work in its favor, if these holders don’t cooperate, Dogecoin might miss out on this opportunity. Keeping an eye on their actions over the next few days will be crucial.

2024-10-28 01:12

DOGE might be squeezing on a rebound

Something might be sabotaging their efforts

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