- Exchanges have witnessed an outflow of 49.89 million DOGE coins.
- 54% of top traders are going long on the memecoin.
For more than three months, the leading meme coin, Dogecoin [DOGE], seems to be breaking through its extended downward trending line.
The historical pattern of this trendline often leads to increased selling, yet this time, there appears to be a shift in sentiment due to heightened whale activity and surging trader confidence.
Whales’ rising interest in Dogecoin
In recent times, there’s been significant enthusiasm among whales towards the memecoin, resulting in substantial purchases, according to a crypto analyst’s findings.
Lately, an expert shared on platform X (previously known as Twitter), that whales have purchased approximately 800 million Dogecoin tokens.
This article attracted a lot of interest among cryptocurrency fans, sparking debate over whether now is an opportune moment to invest in Dogecoin (DOGE).
Currently, DOGE was exchanging at approximately $0.157, experiencing a rise of 2.25% over the past day. Concurrently, there was an increase in engagement from traders and investors, resulting in a notable uptick of 5% in overall trading activity.
Dogecoin momentum builds on price charts
According to AMBCrypto’s examination, it seems that Dogecoin has hit a resistance line on its trend five times now, suggesting it might be breaking through this barrier.
Historically speaking, this level has often served as a ‘sell-off spot’, with the price of the memecoin typically dropping after reaching this point on multiple occasions.
Given the present market atmosphere and past trends, this stage seems like a crucial turning point for the memecoin.
On a day-to-day scale, if the memecoin’s price consistently climbs and surpasses the extended downtrend line, it may flip DOGE’s negative trend, possibly causing the price to jump by approximately 7.5% towards the next resistance point at $0.17.
If DOGE doesn’t manage to surpass the trendline, there’s a chance that previous patterns might recur, leading the price to potentially drop towards significant support levels.
On the 17th of April, the memecoin was found to be trading under its 200-day Exponential Moving Average (EMA), which suggests a bearish market. At this moment, it appears that sellers have more control over the asset’s price.
$50 million of outflows
On top of that, DOGE’s bullish outlook was further supported by on-chain metrics.
According to data from a blockchain analysis company called Coinglass, there has been a transfer of approximately 49.89 million Dogecoin off exchanges over the last four business days.
A significant release suggests possible buildup, potentially leading to increased demand and further upward trend, as the market is experiencing now.
Bulls dominate derivatives market
Simultaneously, the derivative data indicated a rising optimism among bullish investors regarding the asset. Specifically, the Long/Short ratio for DOGE was 1.17, meaning that 54% of major traders chose to buy (long) while only 45.99% opted to sell (short).
By looking at these blockchain statistics together, it seems like bulls have the upper hand right now, helping Dogecoin potentially break through its long-standing resistance line.
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2025-04-18 01:23