Dogecoin (DOGE) Stumbles Despite Bullish Whale Activity
Dogecoin (DOGE) is facing a crossroads, with a price drop and declining futures open interest suggesting a potential downward trend. However, recent on-chain activity hints at a more bullish outlook, with whales accumulating DOGE in large quantities.
Dogecoin Price Tumbles, Futures Interest Wanes
DOGE has fallen 1.5% in the last 24 hours, currently trading at $0.106. This decline coincides with a drop in futures open interest, indicating a decrease in investor interest in leveraged DOGE trading.
DOGE/USD Technical Analysis Suggests Further Decline
Technical indicators like the falling channel and the emerging bear pennant pattern on the daily chart paint a bearish picture for DOGE. A break below the pennant could trigger an 18% plunge to $0.085.
Weakening Momentum Confirmed by Indicators
The DOGE Chaikin money flow (CMF) and the relative strength index (RSI) are trending downwards, further supporting the bearish sentiment. These indicators suggest diminishing buying pressure and accelerating downward momentum.
Support and Resistance Levels
If the price falls, key support levels to watch include $0.103 and $0.091. Conversely, a potential rise could see DOGE reach $0.13, with resistance at $0.116 and $0.125.
Whales Accumulate DOGE, Suggesting Bullish Outlook
Despite the bearish technicals, on-chain data from IntoTheBlock reveals a contrasting narrative. Whale netflow has surged, indicating that major holders are accumulating DOGE in significant amounts. This suggests these investors believe in DOGE’s long-term potential.
Further Evidence of Bullish Sentiment
Supporting this notion is the increase in DOGE entering the wallets of major holders and the decrease in DOGE leaving these wallets. This trend signifies growing confidence among large investors in DOGE’s future performance.
Dogecoin’s Recent Price Rally
DOGE’s recent price surge after hitting a low point suggests resilience and potential for a short-term bullish trend. Some analysts believe this could be part of a larger corrective wave, with a possible retest of $0.08 before a potential upward move.
Analyst Highlights Positive Factors
Despite the short-term bearish outlook, some analysts point to positive factors like a white pattern signaling a potential price bottom and divergences on higher timeframes, suggesting the downtrend may be nearing its end.
Meme Coins Remain Popular
While DOGE’s future trajectory remains uncertain, it maintains its position as the second most traded meme coin on Binance by 24-hour trading volume. This highlights the continued popularity of meme coins among investors.
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