Dogecoin (DOGE) has been on a rollercoaster ride lately, experiencing a 14.98% price decline in the last month. Despite the dip, some analysts see a potential silver lining, with whale activity and low liquidation rates hinting at a future upswing.
Recent Downtrend for DOGE
Over the past seven days, DOGE has fallen 7.46%, currently trading at $0.1342. Analysts at AMBCrypto predict short-term consolidation between $0.12 and $0.15, with a potential support test at $0.12 if selling pressure continues. However, a bullish long-term scenario suggests a price range of $0.17 to $0.2.
Looking for the Light: Bullish Indicators
The Relative Strength Index (RSI) currently sits at 36, indicating a potential for a bullish reversal if the market holds. This suggests that despite the current downtrend, a future upswing is a possibility.
Whales Accumulate, Liquidation Remains Low
Interestingly, data from Coinglass reveals low liquidation levels in the past week, with both short and long positions experiencing minimal forced selling. This indicates market consolidation and stability, despite a slight advantage for short-position investors.
Also Read: Dogecoin (DOGE) Price Slides Below $0.15, Market Cap Shrinks
Whale Activity: A Positive Sign?
According to Santiment, whales (investors holding over $5 million in DOGE) have been actively accumulating assets, with over 52% of DOGE currently in their hands. This whale activity, coupled with low liquidation, suggests a potential positive shift in market sentiment.
The Takeaway: Consolidation or Bullish Breakout?
While DOGE has dipped in recent days, investor optimism remains. Increased whale accumulation and low liquidation rates hint at a potential reversal. However, the market’s direction hinges on whether negative sentiment persists, pushing DOGE towards its support level, or if buying pressure emerges, leading to a breakout above the resistance level. Only time will tell if the DOGE army has reason to celebrate.
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.
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