DOGE whales are active, are price fluctuations imminent?

Dogecoin (DOGE) has shown strong bullish momentum over the past week, with its price surging by more than 15%. What's more exciting is that as it approaches key resistance levels, it may see even stronger gains in the coming weeks. At press time, DOGE is trading at $0.1362 with a market cap of over $19 billion.

图片Dogecoin whale activity has increased significantly recently, a trend that comes on the heels of its break above the 100-day exponential moving average (EMA). Once the memecoin crossed this technical threshold, whale activity surged significantly. Data shows a strong positive correlation between large-scale transactions conducted by whales and Dogecoin price fluctuations. When the Dogecoin price reached $0.13, both the number of large-scale transactions and overall transaction volume increased significantly. In the past day, 1,030 large transactions occurred on Dogecoin, involving a total of 6.84 billion DOGE. This activity suggests that large holders may be reallocating their holdings or preparing for greater market volatility.图片

These large traders play a key role in the current market dynamics. When the price crossed the 100-day EMA, an important technical indicator, many traders, including whales, may have received a buy signal. This surge in activity is both a cause and a result of the recent price increase. If the price remains above the 100-day EMA and approaches a breakout above the 200-day EMA, it could indicate a continued bull trend and attract more buying interest.

Meanwhile, the support levels provided by the 50-day EMA ($0.127), 100-day EMA ($0.133), and 200-day EMA ($0.128) need to be closely watched. If Dogecoin can stay above these levels, it may stabilize and hit higher resistance levels around $0.15. However, if the number of large transactions decreases and the price cannot sustain above these moving averages, Dogecoin may face downward pressure. Currently, the relatively neutral Relative Strength Index (RSI) zone shows that the market is waiting for clearer signals.

Can DOGE maintain its bullish momentum?

AMBCrypto's analysis of Coinglass data revealed a bearish signal. For example, the long-short ratio of Dogecoin fell, indicating that there were more short positions than long positions in the market, showing that bearish sentiment dominated.

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Additionally, Dogecoin’s funding rate has also increased significantly. Typically, prices tend to move inversely with funding rates. Therefore, DOGE may turn bearish in the coming days, limiting its chances of breaking out of the falling wedge pattern.

Nonetheless, Dogecoin’s MVRV ratio rose last week, which is a bullish sign.

Next, we will examine the daily chart of Dogecoin to get a better idea of ​​where its price is headed. Interestingly, the indicators show a bullish trend, suggesting the possibility of a successful breakout pattern.

The MACD shows a bullish edge in the market. Both its Relative Strength Index (RSI) and Money Flow Index (MFI) have surged, suggesting that prices will continue to rise. At press time, DOGE is approaching the resistance of a descending wedge pattern. Once it breaks out, DOGE could start a new bull run. Specifically, a breakout could lead to a 66% increase in prices in the coming weeks.

That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.

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