Amid the current market volatility, with many assets witnessing significant price drops and encountering selling pressures, Dogecoin [DOGE], the leading memecoin, is attracting substantial interest from cryptocurrency enthusiasts.
On February 16th, investors and day traders displayed a notably optimistic outlook on the memecoin, as reported by the on-chain analysis company Coinglass.
DOGE Witnesses $18 million Outflow
Information from Spot Inflow/Outflow analysis indicated that crypto exchanges saw a considerable $18 million outflow of DOGE, hinting at potential accumulation.
This significant outflow from exchanges occurred within the last 24 hours and could create buying pressure.
76% of DOGE Traders Favor Long Positions
While whales and long-term holders are making bullish bets, day traders are also displaying similar enthusiasm by strongly favoring long positions.
Statistics showed that the DOGE/USDT long/short ratio on Binance stood at 3.15 at the current moment.
This ratio indicates a strong bullish sentiment among Binance traders, with 3.15 long positions for every short position.
Additionally, at the time of writing, 76% of top DOGE traders on Binance were holding long positions, while 24% were on short positions.
Current Price Analysis
Despite these positive on-chain metrics, DOGE’s price hasn’t been notably affected. It was trading near $0.26 and had dropped over 3.5% in the last 24 hours.
During this period, its trading volume decreased by 45%, reflecting lower engagement from traders and investors compared to the previous day.
DOGE Technical Evaluation and Crucial Levels
According to CryptoCrypto’s technical analysis, DOGE has been hovering within the golden Fibonacci zone, situated between the 50% and 61.8% levels, on the daily timeframe.
This range could be one reason for the optimistic outlook among traders and investors, as it is viewed as an opportune moment to consider long positions.
However, the current market sentiment seems to pose a challenge, hindering DOGE from surpassing the $0.28 resistance level.
Based on recent price movements and past trends, a breakthrough of this resistance and a daily close above $0.28 might propel DOGE by 35% towards $0.39 in the near future.
Positively, DOGE is trading above the 200 Exponential Moving Average [EMA] on both weekly and daily timeframes, indicating an upward trend for the asset.
Combining these on-chain metrics with technical analysis suggests that DOGE could soon overcome the resistance barrier that has impeded its progress in the meme coin market.