As a seasoned researcher with over two decades of experience in the financial markets, I have seen bull runs and bear markets come and go. The current situation with Dogecoin (DOGE) is intriguing, to say the least. From my perspective, it seems that we might be on the verge of a short-term correction before DOGE continues its uptrend.
It appears that the cost of Dogecoin might be preparing for a possible drop prior to resuming its upward trend. The fracture of a crucial support level hints at a potential additional decrease, offering inactive investors a chance to stockpile DOGE before the meme-inspired cryptocurrency ascends further.
Dogecoin Price Could Retest $0.1 Soon
Today, most crypto markets are in the red primarily because Bitcoin (BTC) has recently experienced a correction. This downturn in BTC has caused Dogecoin’s (DOGE) daily chart to adopt a pattern where prices fluctuate within a certain range. The level at which DOGE might find solid support is approximately $0.1, a point where it has attracted buyers in the past. On the flip side, the near-term resistance for DOGE can be found around $0.115, representing the upper limit of this current consolidation phase.
Above $0.115, the “price surge” suggests that Dogecoin aimed to rise further, but heavy selling made it pull back. This significant sell-off might signal a false breakout, followed by a return to test lower prices. As such, investors may find an opportunity to buy DOGE before another potential breakout.
Although the technical indicators point towards a possible pullback, the on-chain data hints at increased involvement by wealthy investors or ‘whales’.
Whales Interested in DOGE Price, Rally Likely
According to data analyzed from IntoTheBlock, there has been a significant rise in the number of large transactions within the last 24 hours, increasing from 122 to 296. This suggests that major investors are showing keen interest in DOGE at its current pricing levels. This trend points towards a positive market outlook and implies that we might witness heightened volatility in the near future.
As a researcher, I’ve delved deeper into the Coinglass Liquidation Map for Dogecoin, and my analysis reveals an overall bullish outlook on DOGE. The map demonstrates that the cumulative Long Liquidation leverage has been surpassing Short Liquidation in the weekly timeframe, implying a prevailing optimism among traders. This imbalance points to a strong bullish sentiment in the market, as they seem to anticipate a further increase in Dogecoin price following this temporary correction.
Additionally, the influence of Dogecoin on social networks reached a peak not seen in five months, hinting that people might be actively searching for “Dogecoin” across various social media sites. A rise in social influence indicates an increase in discussions about Dogecoin, which could entice new investors. Furthermore, high social influence often precedes price increases as more investors express interest.
The significant increase in social influence might be attributable, in part, to Elon Musk’s suggestion that he could cut down nearly 80% of government agencies from 428 to approximately 99 if given the opportunity during the Trump presidency under the D.O.G.E. (Drain the Swamp of Government Excess) initiative.
As an analyst, based on the current statistics and whale behavior, I’m inclined to believe that the Dogecoin price could continue to range around the levels of $0.115 and $0.09 for some time. However, if the meme coin manages to reclaim the $0.115 mark and break through with substantial volume, it might try to push toward new highs, potentially reaching between $0.13 and $0.14.
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2024-10-08 10:47