- Large holders of Dogecoin (DOGE) are on the rise, potentially setting the stage for a price boost.
- Despite the accumulation, DOGE’s price might face resistance at $0.15.
- Traders looking to short the coin might get burnt as a recovery might happen quickly.
As large holders of Dogecoin increase, a potential price boost is on the horizon. However, traders should be cautious as the coin’s price might face resistance at $0.15 and a quick recovery could burn those looking to short.
DOGE’s Large Holders Increase
According to data from Santiment, the number of Dogecoin addresses holding between 100,000 and 1 billion coins has increased. This accumulation started around the 2nd of April, indicating a surge in demand for the coin. As demand increases, the price of DOGE is expected to rise. However, this potential price increase does not happen immediately due to possible sell-offs.
DOGE’s Price Resistance and Potential Rally
At the time of writing, DOGE’s price was $0.14— a 28.18% correction in the last 30 days. Despite this, if the number of large addresses scooping the coin at discount prices increases, then Dogecoin might soon begin a rally that takes it back to $0.18. However, traders should be cautious as the coin’s Market Value to Realized Value (MVRV) Z Score, which checks if a cryptocurrency is in a bear or bull phase, is falling. This suggests that the price might come down again, potentially trading at $0.12.
Trading DOGE: What to Consider
For traders considering DOGE, it’s important to analyze the liquidation levels. These levels can provide an idea of a cryptocurrency’s next movement as they show areas of high liquidity and prices where large liquidation levels might occur. According to Hyblock, high liquidity only appeared at $0.15, meaning that it could be challenging for DOGE to reach this price. However, if the price goes lower, then it could be a good entry point.
Conclusion
In conclusion, while large holders of DOGE are on the rise, traders should be cautious due to potential price resistance at $0.15 and the possibility of a quick recovery. However, if the price goes lower, it could present a good entry point for traders. As always, it’s important to analyze various metrics before making a trading decision.
