Dogecoin (DOGE), the most famous memecoin, has recently been struggling with lower lows amid a broader bearish market sentiment. This has eroded investor confidence in the once-celebrated cryptocurrency. Despite this challenging backdrop, signs of a potential bullish turnaround are emerging.
A Glimmer Of Hope Amid Bearish Trends
Dogecoin started this week with a burst of bullish momentum, albeit short-lived. This uptick, however, could hint at a more significant move brewing in the near future. Over the past five weeks, DOGE has largely moved sideways, but recent indicators suggest a shift may be on the horizon.
The Money Flow Indicator (MFI), which recently bottomed out at just below 20 on August 5, has since rebounded to 63.87. This increase, alongside a similar trend in the Relative Strength Index (RSI), suggests that accumulation is occurring, and bullish momentum may be building.
Whale Activity and Accumulation
A closer look at on-chain data reveals intriguing developments. Recent metrics from IntoTheBlock show a sharp increase in Dogecoin holdings among whales. Over the past two days, large holders’ balances surged to 493.15 million DOGE, indicating significant accumulation. This influx contrasts with a drop in large holder outflows from 442.12 million DOGE to 78.17 million, further supporting the idea of increased accumulation.
The net longs heatmap also points to a bullish sentiment. Long positions peaked around the $0.101 price level, with approximately 4.154 million long positions compared to 1.54 million net shorts. This disparity underscores a stronger bullish outlook among investors at the time of writing.
Also Read: Dogecoin Whales Accumulate 493M DOGE- Is A Bullish Rally Imminent?
Looking Ahead – Potential for a Rally?
Given the current indicators and whale activity, Dogecoin might be on the cusp of a significant rally. However, this optimistic scenario hinges on the absence of any major disruptive events that could undermine the growing confidence in DOGE.
As the memecoin navigates these turbulent waters, all eyes will be on whether the recent bullish signals will lead to a sustained recovery. For now, Dogecoin enthusiasts and investors should stay tuned for further developments that could signal the start of a new upward trend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
