Following a noticeable decline in value recently, Dogecoin [DOGE] seems ready for a potential recovery.
This optimistic change in direction has attracted considerable interest from cryptocurrency enthusiasts, resulting in increased activity over the last 24 hours.
Rise of 40% in substantial transaction volume
According to data from IntoTheBlock, there has been a significant 40% surge in large transaction volume for DOGE in the past day.
This notable uptick implies that the surge is mainly fueled by the involvement of crypto whales or institutional investors.
Furthermore, Coinglass, another on-chain analytics firm, has reported consistent outflows of DOGE from global exchanges following its price drop. Over the previous day, exchanges saw a substantial outflow of $20.65 million in DOGE.
Considering these on-chain indicators collectively, it suggests that bullish support has returned for the memecoin. DOGE has now entered the critical price reversal territory of $0.30, a level associated with significant price surges historically.
Technical Analysis and Price Behavior of Dogecoin
As per CryptoCrypto’s technical analysis, DOGE seems to be forming a bullish double-bottom pattern on the daily chart after its recent decline.
The memecoin has successfully concluded the first bottom and is currently working on forming the second one.
Based on recent price movements, if DOGE maintains levels above $0.30, there is a high probability of a 30% surge to hit $0.42 in the coming days.
Despite a significant drop of more than 28% in the last ten days, DOGE has managed to remain above the Exponential Moving Average (EMA) on the daily chart, signaling its continuance in an upward trend.
Present Price Momentum and Crucial Liquidation Zone
In view of the optimistic outlook, key liquidation zones are seen near $0.31. Long position holders have accumulated approximately $47.21 million in long positions.
Conversely, short sellers have established short positions worth $19.28 million at the $0.335 level.
Nevertheless, these thresholds are at risk of liquidation if market sentiment changes and prices reach those levels. At present, DOGE is trading around $0.324, having experienced a 2.55% decrease in value over the past 24 hours.
Simultaneously, its trading volume has decreased by 20% during the same period, suggesting reduced engagement from traders and investors compared to the previous day.