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Dogecoin (DOGE) is witnessing a notable surge in large transaction volume, suggesting increased interest from institutional investors and whales.
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Despite recent price corrections, a significant majority of traders on Binance maintain long positions, pointing to confidence in DOGE’s potential.
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As reported by Coinglass, 75.08% of DOGE traders are currently betting on a bullish outlook, despite mixed signals in the market.
This article analyzes the recent surge in Dogecoin’s large transactions and trading sentiment, shedding light on whether bullish trends can continue despite market fluctuations.
Whale activity soars 41%, bullish signal?
Recent data from IntoTheBlock indicates that Dogecoin’s large transaction volume has surged by an astonishing 41.12% over the last 24 hours, potentially signaling a bullish trend driven by institutional interest. This surge in whale activity may suggest a renewed confidence in the memecoin’s value.
As more institutional players accumulate DOGE, the potential for significant price movements increases, with traders closely monitoring this development.
Source: IntoTheBlock
In addition to the surge in transaction volume, Dogecoin’s daily active addresses have increased by 34.91%, further emphasizing the uptick in interest from both retail and institutional investors. With such metrics on the rise, many analysts are suggesting that the recent price consolidation might precede another upward movement.
75% of traders are long on DOGE
According to data from Coinglass, a significant bullish sentiment is evident as traders are overwhelmingly favoring a long position on Dogecoin. With the Binance DOGEUSDT Long/Short Ratio at 3, this translates to a majority of traders believing in DOGE’s potential for an upward rally.
Specifically, 75.08% of DOGE traders on Binance are currently holding long positions, indicating that confidence in a price recovery remains robust. Each long position reflects trader optimism, even as the memecoin hovers near a critical resistance level.
Source: Coinglass
Despite the bullish metrics on the trading front, Dogecoin’s price has seen a recent decline of 8.40%, trading around $0.2276 at press time. This puts DOGE in a precarious position as trading volume also dipped by 10%, indicative of waning participation from retail investors.
Dogecoin’s price action & key levels
Current technical analysis illustrates that Dogecoin is at a pivotal resistance level of $0.25. The question remains: will DOGE manage to break through this barrier, or is it facing another round of selling pressure?
Historically, similar price levels have resulted in significant downward movements for the memecoin, raising concerns among traders about potential repetition of past patterns.
Source: Trading View
If DOGE cannot break through the $0.25 resistance and closes a daily candle below $0.22, it may face increased selling pressure in the subsequent days. Conversely, a close above $0.255 could open the door for a potential rally, propelling the memecoin toward its next pivotal target at $0.30, setting the stage for a potential 20% gain.
Conclusion
The market dynamics surrounding Dogecoin suggest a battleground between bullish sentiment and bearish pressure. With significant whale activity and trader sentiment leaning long, DOGE’s next moves will be scrutinized. Traders should monitor key support and resistance levels closely to navigate the evolving landscape, with the overarching sentiment indicating that although challenges remain, there is still substantial potential for gains if bullish trends prevail.
