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Recent whale activity along with increasing metrics indicates Dogecoin (DOGE) might be on the verge of a significant bullish movement.
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Notable rises in active addresses and a marginally positive market sentiment further support this potential upward price shift.
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According to Whale Alerts, the recent transfer of 800 million DOGE tokens sparked discussions, hinting at possible major market shifts.
Dogecoin shows signs of a potential bullish breakout as whale transactions and rising active addresses raise market interest.
Is DOGE poised for a bullish move?
Examining technical indicators, Dogecoin is displaying some favorable trends; however, traders should remain prudent. The Relative Strength Index (RSI) is currently at 68.22, nearing the overbought threshold of 70.
This positioning suggests Dogecoin is experiencing considerable strength but is approaching a level where profit-taking might occur. Moreover, the 9-EMA being above the 21-EMA points towards a bullish momentum in the short term; yet, a confirmed crossover is still awaited, indicating a cautious approach among traders regarding a breakout.
Source: TradingView
DOGE NVT ratio: Is market activity building?
The recent rise in the Network Value to Transactions (NVT) ratio from 51.93 to 66.57 within just 24 hours indicates an uptick in transaction volume relative to Dogecoin’s market cap, often interpreted as a sign of increasing market activity.
This growing NVT ratio could suggest an underlying upward trend; however, since the increase is moderate, caution is advised. Traders might want to see more substantial volume growth before expecting notable price movements.
Source: Santiment
Surge in active addresses: What does it mean?
In addition, Dogecoin has seen a striking increase in its daily active addresses, jumping from 82.7k to 122.84k—a notable 48% rise in just one day. This spike is often viewed as an encouraging indicator of growing network engagement.
A proliferation of active addresses can reflect heightened investor interest, which might lead to positive price dynamics moving forward. This notable increase suggests that Dogecoin is gaining recognition amongst investors.
Source: Santiment
Market sentiment: Bulls slightly ahead
The current long/short ratio for DOGE reveals a split of 52.41% long positions against 47.59% shorts, resulting in a long/short ratio of 1.1013. This marginally positive bias indicates that a larger number of traders are anticipating price increases.
Despite this, the similar ratio also signals a divided market; both bulls and bears are awaiting clearer indicators before making decisive moves.
Source: Coinglass
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Is a breakout imminent?
While promising indicators such as whale activity, increased transaction volume, and escalating active addresses suggest that DOGE might be gearing up for a bullish breakout, contrasting technical signals urge discretion.
The market appears to be consolidating, which means traders should wait for further confirmation before fully engaging in a breakout strategy.
In conclusion, while the potential for a price increase exists, Dogecoin’s forthcoming moves will depend on ongoing momentum and clearer market indicators.
