The number of major shareholders is increasing, which could set the stage for higher prices. But it won’t be easy.
Despite the accumulation, the DOGE price might face resistance at $0.15.
Traders who want to short the coin may suffer losses as a recovery may occur quickly.
AMBCrypto can confirm that the number of addresses holding between 100,000 and 1 billion Dogecoin [DOGE] has increased.
We note that accumulation started around April 2, according to Santiment data.
Typically, a surge in these addresses indicates an increase in demand for the token. If demand increases, the price of DOGE should rise.
But in most cases, this potential price increase will not happen immediately. This is because some selling may occur elsewhere.
As of this writing, DOGE is priced at $0.14, having corrected 28.18% in the past 30 days.
However, if the number of large addresses buying the coin at a discount increases, Dogecoin might soon start a rally that could take it back to $0.18.
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Source: Santiment
Additionally, AMBCrypto looks at the Market Value to Realized Value (MVRV) Z-score. This score checks whether a cryptocurrency is in a bear or bull phase.
When the MVRV Z-score is negative, it indicates that the market is in a bearish cycle. But for Dogecoin, the indicator is 52.83%, indicating that the currency has maintained a bullish phase.
However, the indicator is declining, suggesting that the price may drop again. If this is the case, DOGE could trade at $0.12.
As a trader, it might be tempting to assume that the price could drop to this level. However, it is important to check other indicators before deciding to go all in.
Source: Santiment
Wait for a drop before taking the trade
For this part, AMBCrypto analyzes the liquidation levels. Through the liquidation levels, traders can understand the next trend of the cryptocurrency.
This is because the indicator shows price areas of high liquidity and likely high liquidation levels.
According to Hyblock, high liquidity only occurs at $0.15, which means it may be challenging for DOGE to reach this price.
If this situation persists, you may want to ignore buying DOGE at this time. But if the price moves lower, then this could be a good entry point.
The Cumulative Liquidation Level Delta (CLDD) provides insights into Dogecoin’s predictions in terms of entry points. As of the time of writing, CLLD is negative.
Source: Hyblock
A positive CLLD indicates that there are more long liquidations in the market. On the other hand, a negative CLLD suggests that shorts are facing losses on most of their positions.
In addition, the negative results of CLLD also confirmed the latter part of the above statement.
For the price, a negative reading on the indicator means that late bears may be punished as Dogecoin could start a sharp recovery right away.
