Dogecoin [DOGE] experienced a significant price surge, gaining 46% from Thursday, May 8th, to Saturday, May 10th. This impulsive breakout saw DOGE breach a two-month range, igniting bullish sentiment among investors. However, the 11 hours preceding press time revealed a 7% retracement from the recent high of $0.25, with DOGE trading at $0.233.
Crypto analyst Ali Martinez highlighted whale activity as a key driver behind the recent price action. According to Martinez, whales accumulated 600 million DOGE, valued at nearly $140 million at press time. The influx of demand during the breakout signaled further gains could be imminent, although a short-term retracement remained likely.
Whales have bought 600 million #Dogecoin $DOGE in the last 48 hours! pic.twitter.com/4s84fodwkk
— Ali (@ali_charts) May 10, 2025
The two-month range spanned from $0.142 to $0.195, with the mid-range level of $0.169 serving as support for nearly two weeks before the breakout. Notably, DOGE surpassed the 78.6% Fibonacci retracement level, derived from the November 2024 rally. This breakout restored investor confidence as Dogecoin nearly retraced its entire 2024 rally before surging again.
Technical indicators also reflect a mix of bullish and bearish signals. The Chaikin Money Flow (CMF) was at +0.18 at press time, suggesting notable capital inflows into the market. Meanwhile, the Money Flow Index (MFI) formed a bearish divergence over the past two days, signaling a potential pullback. The MFI has since reset to neutral levels, indicating that DOGE may not dip below $0.222.
Key Fibonacci retracement levels at $0.214 and $0.204 could serve as potential retest zones in the coming days. Meanwhile, the $0.225-$0.216 region, identified as a liquidity cluster, aligns with the technical support levels outlined earlier.
The liquidation heatmap from the past week further underscores the impact of short liquidations on the upward momentum. The $0.238 and $0.225 levels remain notable magnetic zones, as DOGE continues to navigate a volatile market landscape.
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: Dogecoin (DOGE) Eyes $1 as Analysts Predict Major Breakout – Is the Meme Coin Back?
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.
