Dogecoin (DOGE) is catching the eye of investors as strategic buying signals suggest a potential rebound in the coming months. Recent data reveals a significant bullish sentiment building up around the meme coin, poised to make a substantial impact on its market trajectory.
$50 Million Bet On DOGE’s Rebound
According to the latest Exchange Onchain Market Depth data, investors are ready to pour a hefty $50 million into Dogecoin. Specifically, there’s a robust buy order for 500 million DOGE coins at the $0.0099 price level. This order stands in sharp contrast to the 365 million DOGE coins, worth approximately $36.5 million, that sellers are prepared to offload.
This imbalance suggests a strong buying interest at lower levels, which could be a precursor to a price upswing. The increased demand from buyers indicates that Dogecoin might be on the brink of a significant rally.
On-Chain Accumulation Boosts Bullish Sentiment
Further fueling optimism, Santiment data highlights a notable increase in Dogecoin holdings among addresses with between 1 million and 10 million DOGE. Typically, a reduction in these balances signals selling pressure; however, the current rise points to ongoing accumulation, both on exchanges and on-chain. This dual accumulation often reinforces a bullish outlook, suggesting that DOGE could experience upward momentum.
Technical Analysis Points to Potential Gains
Crypto analyst Rekt Capital also echoes a positive sentiment towards Dogecoin. On September 14, he projected that DOGE might break out of its current downtrend and embark on a consistent uptrend. At present, Dogecoin is trading around $0.10—a critical support level for the coin. The daily chart reveals robust support at this price point, hinting at a potential bounce.
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Adding to the bullish case, the Money Flow Index (MFI) is positioned above the signal line, indicating substantial capital inflows. If the MFI remains above the midpoint, DOGE’s price could rise, potentially rallying by up to 50% to reach $0.15. However, a break below the current support level could negate this positive outlook, with the price potentially slipping to $0.091.
Dogecoin’s current market dynamics reflect a promising scenario for a price recovery. The combination of substantial buying interest, increased on-chain accumulation, and positive technical indicators all suggest that DOGE might be set for a rebound. As always, investors should stay vigilant and consider both the bullish and bearish signals before making decisions.
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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