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After more than 90 days of a persistent downtrend, Dogecoin (DOGE), the largest memecoin by market cap, is showing signs of a potential breakout. The asset has reached its descending trendline for the fifth time—historically a strong resistance point—but this time, the mood is changing.
Crypto whales have begun accumulating DOGE at an impressive rate. A well-known crypto expert revealed on X (formerly Twitter) that over 800 million DOGE were purchased by whales in recent days, sparking renewed optimism among traders. As a result, DOGE’s price climbed 2.25% in the last 24 hours to trade around $0.157, accompanied by a 5% jump in trading volume.
Technical indicators suggest DOGE may be at a pivotal point. If the memecoin breaks and sustains above its long-term descending trendline, analysts project a 7.5% rally toward the next resistance at $0.17. However, a rejection could see the asset revisit lower support levels, as it still trades below the 200-day Exponential Moving Average (EMA)—a key indicator of a bearish trend.
Adding to the bullish narrative, data from Coinglass revealed that exchanges have recorded nearly 50 million DOGE in outflows over the past four days. This suggests significant accumulation, typically a precursor to upward price movement.
In the derivatives market, sentiment also leans bullish. DOGE’s Long/Short Ratio currently stands at 1.17, with 54% of top traders taking long positions. This growing confidence supports the possibility of a trend reversal.
While Dogecoin has historically struggled at this technical level, rising whale activity, increasing trading volumes, and bullish derivatives positioning hint that this time could be different. All eyes are now on DOGE’s price action in the coming days as it approaches a crucial make-or-break zone.
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.
Also Read: Cardano and Dogecoin Flash Bullish Signals
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
