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Recent data reveals that long traders dominate 75% of Dogecoin (DOGE) trading accounts, reflecting a bullish sentiment in the crypto market.
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This shift has been accompanied by a notable increase in retail interest, evidenced by a surge in new on-chain addresses during recent price fluctuations.
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“The long traders are gearing up for potential rallies,” stated a report from COINOTAG, emphasizing the sentiment observed in the DOGE market.
This article explores the latest trends in Dogecoin trading, highlighting the bullish sentiment and retail interest while analyzing potential market movements.
Dogecoin Retraces for a Week, but Re-establishes Lower Timeframe Bullish Structure
Despite a brief retracement, the 1-day chart indicates that Dogecoin is poised for further upward movement. The retracement observed last week presented a rare buying opportunity for investors, especially with the retail sector showing renewed interest. However, the market’s response has been mixed, with low trading volume raising concerns.
Source: DOGE/USDT on TradingView
Recent performance indicates that while Dogecoin has established a bullish structure, the high selling pressure at the $0.26 mark recently hindered bullish momentum. Specifically, the On-Balance Volume (OBV) remains below its February highs, suggesting potential for reevaluation of trading strategies.
However, indicators such as the Relative Strength Index (RSI) remain above 50, supporting the argument for continued bullish potential. Notably, the 50% Fibonacci retracement level has emerged as a crucial support level at $0.212, after the price rally from $0.164 to $0.26.
Source: DOGE/USDT on TradingView
The 4-hour chart underscores the bullish breakout beyond the recent lower high at $0.229, affirming buying strength, albeit with weak buying volume. This scenario prompts consideration of potential downward moves to the $0.212 level if volume does not increase substantially.
Source: Coinglass
Furthermore, insights from Coinglass indicate an equilibrium in taker buy/sell volume, showing a balanced market sentiment in the short term. This data underlines the unique position of long traders, who now make up 75% of total accounts—a stark contrast to bearish perspectives.
Conclusion
In summary, the recent fluctuations in Dogecoin’s trading landscape reveal intricate dynamics between bullish sentiment and market pressures. Interested parties should monitor trading volumes closely, as this will significantly impact the potential for upward movement. With longs steering the market, strategic observations will be crucial for capitalizing on future trends.
