Dogecoin (DOGE) Market Analysis

Dogecoin (DOGE) has been under pressure during the recent two-month downturn in the crypto market. Despite this, significant activity from large investors and increasing user engagement suggest potential bullish momentum.

Data from Santiment indicates a rise in the number of wallets holding at least one million DOGE, signaling increased accumulation and renewed confidence among investors anticipating a market turnaround.

> 🐶📈 Dogecoin, like most meme coins, has been hammered during the 2-month crypto-wide retrace. However, keep an eye on the rising number of wallets holding at least 1M $DOGE, which have recovered during the price dump. Active addresses are also at 4-month highs. pic.twitter.com/v4Vx5ifmQv

Additionally, daily active Dogecoin addresses have hit a four-month high, surpassing 150,000, indicating growing adoption and utility for the meme coin.

Critical Price Levels to Watch

Alongside accumulation by large holders, technical indicators reveal Dogecoin is at a crucial support level. Analyst Ali Martinez has noted that DOGE is testing a key support zone around $0.167, aligning with the 0.618 Fibonacci retracement and the lower boundary of an ascending channel.

Historically, DOGE has bounced back from such trendlines, leading to substantial upward momentum. If buyers maintain support at this level, a price target of $0.35 or higher could be feasible. Conversely, if the price falls below this support, it may decline toward $0.11, leading to a more bearish outlook.

Market liquidity also significantly influences Dogecoin’s price movements. Latest liquidation data indicates that large surges in short liquidations often coincide with DOGE rallies, while long liquidations are typically observed during price declines. Key liquidation levels are around $43.14 million and $86.29 million.

Implications for Near-Term Trading

As DOGE stabilizes near $0.30, liquidations are balancing between long and short positions, suggesting traders are positioning for a more stable trading range shortly.

From a momentum standpoint, the Relative Strength Index (RSI) sits at 37.16, close to oversold territory. While not oversold yet, this suggests potential buying interest may be building.

The Moving Average Convergence Divergence (MACD) remains negative, with the MACD line at 0.0020020 and the signal line at 0.0199476. However, the histogram is showing signs of waning selling pressure, hinting at a possible reversal in trend.

Disclaimer: The information in this article is for informational and educational purposes only. It does not constitute financial advice. Coin Edition is not responsible for any losses incurred. Readers are cautioned to exercise caution before taking any action related to the company.