Dogecoin, the popular memecoin, is attracting attention from both traders and investors despite facing a downward trend in its price in recent months. As we head into the final quarter of 2024, there is anticipation surrounding possible developments that could lead to a significant breakout.
Analysis of Dogecoin’s price movement shows a consistent decline, with key levels of resistance suggesting potential selling pressure from large holders. The data from IntoTheBlock reveals substantial buying activity by whales within the range of $0.085278 to $0.100710, where these large holders have maintained profitability.
However, caution is advised for traders, as a significant cluster of sellers is observed between $0.101381 and $0.116812, creating a barrier to Dogecoin’s upward trajectory. Notably, at the $0.11 mark, more than 23,000 addresses are prepared to go short with over 31 billion DOGE, further complicating the coin’s price surge.
Concerns Over DOGE/USDT Price Movement
An assessment of Dogecoin’s price action indicates a negative bias in recent patterns. Historically, patterns in DOGE/USDT pairs have led to price spikes, but the scenario has shifted after reaching $0.23 in April 2023. Presently, triangle formations are resulting in price drops, with the recent rejection at $0.11 underscoring the potential for further decline. A breach below $0.092 could trigger more selling pressure from whales holding significant short positions.
In the event of DOGE breaking above the resistance level, traders are advised to reassess the situation to avoid unexpected market movements.
Assessment of DOGE Liquidation Levels
The liquidation levels for DOGE present a mixed outlook, with approximately $219K in long liquidations located above the $0.101 price point, and about $195K in shorts positioned below $0.098. The market is likely to gravitate towards one of these levels, with current sentiment leaning towards a movement to the lower liquidity region. Following this, the next price target post a downward trend could be $0.109, considering the previous resistance experienced at this level.
Distribution of Holdings
An analysis of holding distribution shows a consistent number of addresses maintaining holdings exceeding 10 billion DOGE, while those with over 1 billion DOGE have decreased by 2.29%. Despite this bearish trend, addresses with holdings of more than 100 million DOGE have increased by 2.81%, signaling a slightly bullish sentiment.
Nevertheless, the substantial holdings by large whales continue to exert a considerable impact on Dogecoin’s price movement, posing challenges for smaller holders to counteract their influence effectively.
The future trajectory of Dogecoin’s price remains uncertain, with current indicators suggesting a bearish outlook in the short term. The market dynamics, especially concerning whale activity, are critical factors to monitor in the coming period.