Dogecoin [DOGE], the leading memecoin in terms of market cap, is attracting considerable attention from cryptocurrency enthusiasts due to its strong performance and recent upward momentum.
Nevertheless, the coin is currently in a phase of consolidation, which can be interpreted as a period of price adjustment.
Large Purchase of 155 million DOGE
During this consolidation phase, a significant player took advantage of the situation in DOGE and executed a noteworthy transaction.
On the 22nd of October 2024, Whale Alert, a blockchain transaction monitoring service, revealed on X (formerly Twitter) that the entity had shifted 155 million DOGE tokens valued at $21.65 million from the Robinhood crypto exchange to an undisclosed wallet.
It seems likely that the entity withdrew these substantial tokens from Robinhood due to the optimistic price movement and positive market mood.
Technical Analysis and Key Levels for Dogecoin
As per CryptoCrypto’s technical analysis, DOGE displayed bullish tendencies by recently breaking through and closing a daily candle above a strong resistance level at $0.138.
This noteworthy breakthrough occurred during a 40% surge, but the price is currently consolidating within a narrow range.
This consolidation phase is encouraging for DOGE holders, suggesting an accumulation period before the next upward move.
Based on recent price behavior and past momentum, a breakout and daily candle closure above the consolidation zone around the $0.15 mark could potentially propel DOGE by 17%, aspiring to reach $0.175 in the near future.
However, this optimistic scenario will only materialize if DOGE manages to break out and close a daily candle above the consolidation area.
DOGE’s On-Chain Data
Despite the positive outlook, DOGE’s on-chain metrics currently indicate a lack of trader interest in long positions. Coinglass, an on-chain analytics firm, reported that DOGE’s Long/Short Ratio was at 0.89, reflecting a bearish sentiment among traders.
Furthermore, the Open Interest for DOGE decreased by 3.5%, indicating that traders may have either unwound their positions or exited the market due to the correction.
The combination of declining open interest and a Long/Short Ratio below 1 suggests a weak bearish sentiment among traders.
Currently, DOGE is trading around $0.144 and has experienced a price drop of over 1.8% in the last 24 hours.
During the same period, its trading volume declined by 2.6%, signaling a slight reduction in trading activity.