Following the rate cut announcement and anti-dovish stance by Federal Reserve Chairman Jerome Powell,
Market sentiment has shifted. This has led to a massive sell-off in the crypto market.
Traders on Binance have long DOGE positions.
Dogecoin could rise by 25% to hit the next resistance level of $0.45 if it holds itself above the $0.345 mark.
Dogecoin (DOGE) has been gaining attention from crypto enthusiasts despite the recent price drop.
Increased interest in Dogecoin
Amid the market sell-off, DOGE saw a price drop of more than 13.5%. Despite the drop, whales and long-term holders have shown strong interest in the meme coin, according to cross-chain analytics firm Coinglass.
Data from DOGE Spot Flow/Flow has revealed a massive inflow of $150.03 million worth of DOGE from exchanges across the cryptocurrency market.
DOGE Spot Flow/Flow
Source: Coinglass
Flow is an on-chain metric that shows how much DOGE whales and long-term holders have withdrawn from exchanges. These metrics indicate potential bullish momentum and an ideal buying opportunity.
In addition to the participation of long-term holders, traders are also very bullish on the meme coin. Coinglass’s Binance DOGEUSDT long/short ratio is 4.93, indicating a strong bullish sentiment among traders.
Currently, 83.15% of top traders on Binance hold long positions, while 16.85% hold short positions.
Technical Analysis and Key Levels
With such a strong bullish sentiment among traders and investors, DOGE has managed to stay above the crucial support level of $0.345. According to AMBCrypto’s technical analysis, DOGE is still looking bullish, and with the continued support from traders and investors, the meme coin has started moving higher on the daily timeframe.
Dogecoin technical analysis
Source: TradingBinance
Based on the technical analysis, if DOGE holds above $0.345, it is likely to rise by 25% to reach the next resistance level of $0.45.
Combining these on-chain metrics with technical analysis, it appears that bulls are currently dominating the meme coin. This dominance is protecting it from further price declines.
At press time, DOGE was trading near $0.31 and saw a price decline of over 4.65% in the past 24 hours.
During the same period, trading volume increased by 51%, indicating increased participation from traders and investors compared to the previous day.
