Dogecoin whales are hoarding en masse—Is this good news for traders?

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Dogecoin (DOGE) has recently shown breakthrough potential, with a surge in whale activity and the number of addresses being the main catalysts. However, low trading volume and mixed technical signals remind the market to remain cautious.

Whale accumulation and address activity

In the past 48 hours, Dogecoin whales have purchased over 90 million DOGE, indicating increasing confidence among large investors. Additionally, the number of new Dogecoin addresses and active addresses has grown by 102.4% and 111.32%, respectively, showing a significant increase in user participation. The rise of 155.44% in zero-balance addresses means that a large number of new users are trying to enter the Dogecoin ecosystem.

Price trend: Breakthrough or consolidation?

As of now, the price of Dogecoin is approximately $0.3155, tightly consolidating within a bullish triangular flag pattern. The key resistance level is $0.366, and breaking this level could drive the price up to $0.50. However, the low trading volume and mixed signals from technical indicators suggest that the market has not yet made a clear decision.

Technical indicators and market sentiment

The Relative Strength Index (RSI) is currently at 40.76, indicating that the market is approaching oversold territory but has not yet fully reached it. The Directional Movement Index (DMI) shows a bearish dominance, with -DI at 31.91, higher than +DI at 15.28, suggesting that the current trend leans bearish, but catalysts are still needed to change the situation.

Liquidation data: Signs of a market shift

Recent liquidation data shows that the liquidation amount for short positions is $257,420, indicating that shorts are losing control. This could present an opportunity for a bullish reversal in the future, but sustained buying interest remains key.

Conclusion

The accumulation of Dogecoin by whales and address activity indicates the potential for a breakthrough, but the current low trading volume and uncertainty in technical signals still limit market movement. If Dogecoin successfully breaks through $0.366, the next phase of upward movement may be initiated. Currently, market sentiment leans towards cautious optimism.

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