- DOGE could soar by 17%, reaching the $0.175 level, if it closes a daily candle above the $0.15 level.
- DOGE’s falling Open Interest and a Long/Short Ratio below 1 indicated weak bearish sentiment among traders.
As a seasoned researcher with years of experience in the crypto market, I have seen my fair share of ups and downs. The recent events surrounding Dogecoin [DOGE] have caught my attention, especially the notable transaction made by a whale transferring 155 million DOGE tokens worth $21.65 million. This move suggests that there might be bullish sentiment among large-scale investors, which could potentially drive the price upwards.
Dogecoin, or DOGE for short, remains a popular choice among cryptocurrency fans due to its status as the globe’s leading meme-based coin by market capitalization. Its remarkable track record and recent surge in value have kept it under close scrutiny.
As an analyst, I’m observing that the current trend shows a consolidation within a narrow band, suggesting a temporary price adjustment or correction.
Whale adds 155 million DOGE
Amid this consolidation, a whale seized an opportunity in DOGE and made a notable transaction.
On October 22nd, 2024, blockchain transaction tracker Whale Alert shared on their platform (previously Twitter) that a large investor, or ‘whale’, moved approximately 155 million Dogecoin tokens valued at around $21.65 million from the Robinhood digital asset exchange to an unidentified wallet.
It seems like the whale could have taken out substantial assets from Robinhood, possibly because of optimistic price trends and a generally favorable market mood.
Dogecoin’s technical analysis and key levels
Based on the technical assessment by AMBCrypto, Dogecoin (DOGE) displayed a positive trend since it managed to break through and end a daily session above a robust resistance point at approximately $0.138.
During its significant surge of 40%, an impressive breakout transpired, however, the price moved within a narrow band.
This consolidation offered hope for DOGE investors, indicating that a build-up or accumulation phase might be taking place before another upward price surge.
Given the latest market movements and past trends, if Dogecoin (DOGE) manages to surpass its current consolidation zone at approximately $0.15 and concludes a daily candle above this level, it’s quite likely that we might see a 17% increase in its price, potentially reaching around $0.175 within the next few days.
This bullish outlook is valid if Dogecoin manages to break through its current range and ends the day with a candle above the consolidation area.
DOGE’s on-chain metrics
Although the overall positive perspective, the data from Dogecoin’s chain suggests a relatively low level of enthusiasm among traders for long positions. As per the on-chain analytics company Coinglass, the Long/Short Ratio for DOGE was 0.89, which implies that traders are leaning more towards short positions rather than long ones, suggesting a bearish trend.
Moreover, a decrease of 3.5% in its Open Interest indicates that traders may have closed their trades or abandoned their positions as a result of the recent market adjustment.
When both the number of contracts being bought (long) and sold (short) are similar, and there’s a decrease in the number of open contracts (open interest), it suggests that traders have a relatively weak negative outlook (bearish sentiment).
Realistic or not, here’s DOGE market cap in BTC’s terms
Currently, Dogecoin is being exchanged around $0.144 per coin. In the last day, it has seen a drop of more than 1.8%.
Over the specified timeframe, I observed a decrease of 2.6% in our trading volume, suggesting a subtle reduction in engagement from traders.
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2024-10-22 20:08