Despite a recent downturn in value, Dogecoin [DOGE] has been attracting interest from cryptocurrency enthusiasts. The market sentiment shifted following Jerome Powell’s anti-crypto stance and the announcement of a rate cut, triggering a significant sell-off across the cryptocurrency market.
Increasing Enthusiasm for Dogecoin
Even amidst the market turmoil, DOGE has witnessed a price drop of more than 13.5%. Nevertheless, on-chain analytics firm Coinglass reported that whales and long-term holders have displayed a strong inclination towards the meme-based digital asset.
Analysis of DOGE’s Spot Inflow/Outflow data unveiled a substantial outflow of $150.03 million worth of DOGE from exchanges, indicating significant activity by whales and long-term holders outside the trading platforms. These insights suggest a potential upward trend in prices, presenting an opportune moment for investors to consider buying.
In addition to the involvement of long-term holders, traders have expressed considerable optimism regarding DOGE. Coinglass’s Binance DOGEUSDT Long/Short Ratio currently stands at 4.93, highlighting a prevailing bullish sentiment within the trading community.
Presently, a significant 83.15% of top traders on Binance have opened long positions, while 16.85% have opted for short positions.
Technical Analysis and Crucial Levels
Supported by the bullish sentiment among traders and investors, DOGE has managed to sustain levels above the critical support threshold of $0.345. According to CryptoCrypto’s technical analysis, DOGE’s outlook remains positive, and with continuous support from market participants, the meme coin has started an upward trend on the daily timeframe.
From a technical perspective, a sustained position above $0.345 could potentially propel DOGE by 25% towards the next resistance barrier at $0.45.
The combination of on-chain metrics and technical analysis indicates a current dominance of bullish sentiment surrounding DOGE, shielding it from further declines in value.
At the time of writing, DOGE was priced close to $0.36, registering a decrease of around 4.65% over the past 24 hours. During the same period, its trading volume surged by 51%, pointing towards increased activity from traders and investors compared to the preceding day.