Dogecoin (DOGE) has been making waves in the cryptocurrency market, riding the coattails of a broader market upturn. The memecoin’s performance has caught the attention of analysts, with many eyeing a potential bullish breakout.
A recent analysis by AMBCrypto uncovered a bullish falling wedge pattern on DOGE’s chart, a technical formation often indicative of an impending price surge. This pattern has been forming since April, suggesting a period of consolidation before a potential breakout. If the cryptocurrency manages to break above the wedge’s resistance, it could retest its April high.
To gauge the likelihood of a bullish breakout, AMBCrypto delved deeper into on-chain metrics. Santiment data revealed an improving MVRV ratio and increased velocity for DOGE, both bullish signals. However, a decline in trading volume coupled with a price drop raised concerns about a potential price correction.
A closer look at IntoTheBlock’s data painted an interesting picture of whale activity. The platform’s analysis showed that a whopping 41% of DOGE’s total supply is concentrated in the hands of whales. Furthermore, the whale vs retail delta stood at an impressive 89, indicating a significantly higher long exposure among whales compared to retail investors.
Also Read: Dogecoin (DOGE) on the Verge of a 10x Surge? Analyst Cryptorphic Ignites Hype
Technical indicators offered mixed signals. While the RSI and MACD hinted at a potential bullish crossover, suggesting a price increase in the near term, the Chaikin Money Flow (CMF) leaned bearish, indicating a potential outflow of funds.
The confluence of these factors presents an intriguing scenario for Dogecoin. While the bullish pattern and positive on-chain metrics are encouraging, the potential for a price correction and mixed technical indicators introduce an element of uncertainty. Investors should closely monitor price action and on-chain data for further clues about DOGE’s trajectory.
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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