Can Bulls Spark a DOGE Price Rally?

Despite Bitcoin’s recent decline towards the $58,000 level, the meme coin sector has maintained momentum. Many top meme coins maintained volatility during the sharp market drop as they are generally less affected by market declines. Notably, Dogecoin price has recovered from recent lows due to increased accumulation. Currently, DOGE is looking to breakout above resistance.

Dogecoin makes comeback with on-chain signal

In the past 24 hours, Dogecoin has experienced significant liquidations as traders on both sides faced losses due to increased market volatility. According to Coinglass, total liquidation of Dogecoin exceeded $1.6 million, with short positions accounting for nearly $1 million of that.

The recent market downturn has led to a significant increase in large transactions involving Dogecoin. According to data from IntoTheBlock, during the same period, Dogecoin’s large volume reached $1 billion, driving a 6.6% increase in price.

The large-scale trading indicator has surged from a low of $731 million, suggesting that whales have taken an interest in the meme coin market following losses in Bitcoin and major altcoins.

Large transactions are often worth over $100,000. IntoTheBlock’s Large Transaction Volume in USD tracks the total value of these transfers and shows daily activity from major investors, including large and institutional investors. This spike in volume indicates high buying and selling activity.

In the case of Dogecoin, the massive trading volume reached 8.45 billion Dogecoin in the past 24 hours, marking an increase of 37%.

The netflow metric accompanying this data reveals that holders were actively accumulating DOGE during the market correction: the shift in the netflow metric into negative territory indicates withdrawals from exchanges, signaling a strong “buy low” trend for Dogecoin.

The metric shows that around $21 million worth of Dogecoin (173 million DOGE) has been removed from exchanges, reducing selling pressure on the meme coin in the past 48 hours.

What will happen to DOGE price in the future?

Dogecoin price fell sharply from the $0.125 consolidation range, plummeting below the Fibonaci channel. However, the price found support near $0.114 and then bounced back as buyers gained confidence. At the time of writing, DOGE price is trading at $0.126, up over 8.6% in the past 24 hours.

If the price sinks below $0.12, it will suggest that the bears have gained the upper hand. This scenario can trigger a drop to the psychological support at $0.10. The bulls will try to stop the decline at this point, but if the bears continue to prevail, the price can fall to $0.08.

Conversely, this bearish outlook could be negated if the price continues to surge from the current position and scales above $0.14. Such a move could lead to a rally to the 50-day SMA at $0.165 and keep the DOGE/USDT pair within a trading range of $0.17 to $0.2.

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