Dogecoin Whale Transaction Sparks Short-Term Optimism for Token Read CoinChapter.com on Google News
LUCKNOW (CoinChapter.com)— On Aug. 13, 2024, a Dogecoin (DOGE) whale transaction caught the attention of market participants, signaling potential bullish momentum amid a broader cryptocurrency market downturn.
According to Whale Alert, a blockchain transaction tracker, a crypto whale transferred 103.8 million DOGE, valued at approximately $11.2 million, from Bittrex to an unknown wallet. The transfer occurred near $0.100, a price point that has proven resilient despite the ongoing declines in major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Following the transaction, DOGE’s price showed signs of recovery, trading near $0.104, accompanied by a 25% increase in trading volume over 24 hours. The whale’s movement, coupled with increased market activity, potentially sets the stage for a short-term rally.
Whale Activity and Technical Indicators Signal Bullish Momentum
The whale’s transfer aligns with the trends observed in the charts provided, further reinforcing the bullish sentiment surrounding DOGE. The chart tracking whale transaction counts alongside the DOGE USD pair reveals a consistent pattern where significant whale activity correlates with price stability or minor upticks.
DOGE whale transaction count. Source: Santiment
Despite the broader market’s bearish conditions, DOGE has managed to maintain its price above the crucial $0.100 support level. This resilience, especially in the face of heightened whale activity, suggests that these large holders may be accumulating DOGE in anticipation of a potential price recovery.
Moreover, medium-sized whales, holding between 10 million and 100 million DOGE, have increased their holdings, indicating a bullish stance. This accumulation by medium-sized players often precedes a price rise, as their buying activity can drive the market.
DOGE supply distribution.
Meanwhile, the largest whales, holding between 100 million and 1 billion DOGE, have slightly reduced their holdings. This redistribution could lead to a more stable price trajectory, as it suggests a spread of market influence among a broader base of significant holders.
The combination of these factors—whale accumulation, resilience at key support levels, and increased trading volume—paints a bullish picture for the DOGE USD pair in the short term. However, it is crucial to remain vigilant, as broader market conditions and potential whale sell-offs could introduce volatility.
Dogecoin Price Continues Falling
Dogecoin’s recent price action reflects the increasing bearish pressure surrounding the memecoin. Following an unsuccessful attempt to convert the August 12 spike into a sustained rally, DOGE experienced a nearly 4% decline on August 13. The downtrend continued on Aug. 14 with another drop of over 4% to a daily low near $0.102.
The failure to clear the 20-day EMA resistance near $0.11 highlights the weakness in upward momentum. This resistance level remains a formidable barrier, and breaking above it is crucial for any potential upward movement toward the 50-day EMA around $0.12.
However, the apparent lack of buying strength suggests that such a move is improbable without a significant shift in market dynamics.
DOGEUSD daily price chart with RSI. Source: Tradingview
On the downside, if DOGE struggles to maintain its current levels, the price could test key support zones near $0.098 and $0.091. A breach below them could trigger further declines, intensifying the bearish trend.
The relative strength index (RSI) currently stands at a neutral 42.20, indicating no definitive momentum in either direction. However, the overall technical setup suggests that bearish pressure is likely to persist unless a significant catalyst emerges.
Additionally, the RSI’s position implies that DOGE is not yet in oversold territory, leaving room for further downside movement.
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