Today, the crypto community was intrigued by Dogecoin [DOGE] as a total of 90,000,000 DOGE, valued at over $36 million, were transferred to Binance. This substantial movement by a whale has led to speculation regarding its potential impact on the price of this memecoin.
As of the latest update, DOGE was priced at $0.3957, experiencing a 1.17% decrease in the past 24 hours. With this shift in momentum, traders are eager to see whether DOGE can move past its current consolidation phase to initiate a bullish rally.
Can DOGE Surpass Its Major Resistance Level?
The daily chart for Dogecoin displayed a bullish cup-and-handle pattern, signaling a probable rally if it manages to breach the resistance level at $0.415. Historically, this level has acted as a barrier in previous attempts, with $0.3095 emerging as a crucial support level.
Moreover, the chart hinted at a potential rise towards $0.50 if DOGE sustains its buying pressure. However, a failure to surpass $0.415 might lead to short-term profit-taking and a retracement to lower levels.
Therefore, traders are advised to closely monitor these levels to anticipate the next move of Dogecoin.
Insights from the MVRV Ratio
At the current time, the MVRV Z-score for DOGE stood at 3.47, indicating that holders are moderately profitable. This metric suggests a balanced market where neither overvaluation nor undervaluation pressures are prevalent.
Additionally, the stable MVRV implies that most investors are holding onto their assets rather than selling them. To foster bullish momentum, there needs to be a substantial increase in profitability or new buying activity. Consequently, the MVRV ratio reflects cautious optimism among DOGE holders.
Upward Trend in Active Addresses – A Positive Sign?
The number of daily active addresses saw a significant rise, with 114,650 wallets engaging in transactions recently. This increase underscores the heightened network activity and growing interest in DOGE.
Furthermore, a surge in active addresses often indicates increased liquidity and demand, which could be supportive of a price surge. However, sustaining these activity levels is vital for confirming a bullish breakout.
Hence, traders should keep an eye on this metric as a potential early indicator of market direction.
Are Bulls Favored in the Long/Short Ratio?
The long/short ratio for DOGE slightly tilted towards shorts at 51.35%, indicating a cautious sentiment among traders. Nonetheless, this marginal preference also suggests indecision in the market rather than outright bearishness.
Additionally, a shift towards long positions in this ratio could trigger short squeezes, propelling the price upwards. Therefore, monitoring changes in this ratio is crucial for predicting the future movement of DOGE.
The whale activity in Dogecoin, alongside the increasing active addresses and bullish chart formations, hint at a potential imminent breakout.
However, breaking through the critical resistance level at $0.415 is essential to confirm the upward trend. If this level is breached, DOGE could likely trend towards $0.50 on the charts.