Dogecoin price is at a crucial point in the daily chart as it approaches a zone of strong resistance. Meanwhile, whales are booking profits, perhaps acting out of uncertainty of whether DOGE can break through the resistance. Conversely, traders remain optimistic that Dogecoin will conquer $0.1 and move higher. The price of DOGE hovered around $0.1067 during the New York trading session, a 0.8% increase in the last 24 hours.

Spot Traders Are Pumping Dogecoin Price

Data from Santiment shows whale transaction count increased gradually from Aug. 21, peaking on August 22, before slightly correcting. All this while, DOGE price was on an uptrend. This indicates that whales might have been booking profits as the price increased.

IntoTheBlock data shows that large-holder netflows dropped by 194% over the last seven days. Coincidentally, Dogecoin Exchange reserves increased by $179M during the same period. This might indicate that whales have been cautiously offloading their DOGE bags throughout the week.

Additionally, the total DOGE supply in profit has hit its highest month-to-date (MTF). This may also explain why whales thought booking profits at these Dogecoin price levels was a good idea.

According to Coinglass data, spot traders played a greater role than Futures traders in the current DOGE uptrend. The Dogecoin funding rate dropped from 0.01% on Aug. 21 to 0.0057% on Aug. 23, while the price increased in the same duration. This signifies that, although futures traders are long on DOGE, Spot traders contribute more to the current uptrend.

Dogecoin price prediction shows a high chance that the asset may exceed the $0.1 barrier. Over 50% of holders are in profit, with no incentive to sell at a loss if there’s a chance they might recover their investment.

DOGE Price Analysis: All Eyes on $0.1

Dogecoin price has broken out of a falling wedge pattern and is now trading above it, signaling a potential shift towards an upward trend.

If the price continues to rise, it will likely encounter resistance around $0.1095. A successful break above this level could mark the beginning of a more significant upward move, with the next major target at $0.1274.

The positive Chaikin Money Flow (CMF) indicates strong buying pressure in the market, supporting a bullish outlook. DOGE price is currently attempting to break above the 200-day EMA, a move that would confirm a shift from a bearish to a bullish trend. Trading consistently above this moving average is typically viewed as a strong bullish signal.

If Dogecoin maintains its position above the 200-day EMA with increased trading volume, it could confirm a longer-term bullish trend with targets above $0.1274.

Dogecoin Price Analysis Chart

However, if the DOGE price fails to break above the 200-day EMA, it may fall back below the falling wedge pattern to $0.1000 or even lower to $0.095, which would invalidate the bullish scenario.

The post Dogecoin Price Analysis As Cautious Whales Book Profits appeared first on CoinGape.

---

Filed under: News - @ August 23, 2024 11:20 am