Dogecoin Price Prediction: On-Chain Metrics Flash Bullish Signal
Key Insights:
- Dogecoin price prediction for the coming days appears bullish, as on-chain metrics flash bullish signals.
- Whale participation in Dogecoin (DOGE) has skyrocketed over the past 24 hours.
- The DOGE four-hour chart appears to be forming a bullish price action pattern.
Dogecoin price prediction appears bullish, as whale activity and long-term holder participation in the meme coin have surged. Meanwhile, DOGE continues to consolidate after breaking out of a descending trendline, suggesting a potential move in the coming days.
Dogecoin (DOGE) Price Action & Technical Analysis
At press time, DOGE was trading near $0.1725 and had recorded a modest price surge of 1.25% over the past 24 hours. However, participation from traders and investors, compared to previous days, has dropped due to the ongoing market uncertainty, which led to a 12% drop in trading volume.
The recent price surge in the meme coin appears to be setting the stage for a bullish trend reversal.
According to expert technical analysis, the DOGE has been consolidating within a range of $0.164 to $0.185 after breaking out of a descending trendline.
With the latest dip in the meme coin, the price has touched the lower boundary at $0.164 and has formed a bullish hammer candlestick pattern on the daily timeframe, indicating a sign of a potential reversal.
Dogecoin Price Prediction
Additionally, on the four-hour chart, DOGE is showing signs of forming a bullish inverted head and shoulders pattern, indicating a possible breakout in the near term.
Based on the recent price action and historical patterns, if the DOGE price continues to rise and closes a four-hour candle above the $0.175 level, there is a strong possibility that the Dogecoin price prediction could turn bullish.
The meme coin could then see a price surge of over 7.5%, potentially reaching the upper boundary of the consolidation range, or even higher in the coming days.
Dogecoin price prediction could only be bullish if it closes a four-hour candle above the $0.175 level, otherwise, the price would either consolidate or decline in the coming days.
Also, DOGE’s 50 Exponential Moving Average (EMA) stood near the neckline of the inverted head and shoulder price action pattern. This pattern acted as resistance, largely why the meme coin was in a downtrend.
Rising Whale Participation
Despite the current price action and market sentiment, participation from whales and long-term investors in the meme coin has surged, according to data from on-chain analytics platforms Coinglass and IntoTheBlock.
Data from IntoTheBlock revealed that whale transactions ranging from $1 Million to $10 Million have surged by 540%, while transactions exceeding $10 Million have skyrocketed by 8,060%, indicating growing confidence and increasing interest in the meme coin.
Meanwhile, another on-chain metric, spot inflow/outflow, reveals that exchanges have witnessed an outflow of $2.38 million worth of DOGE, indicating potential accumulation that could lead to buying pressure and further upside momentum.
However, the data shows that exchanges have been consistently witnessing DOGE outflows, suggesting that whales and long-term holders might be taking advantage of the price dip.
$134 Million Worth of Bearish Bet
Despite the bullish outlook from whales and long-term investors, traders appear bearish, as many are strongly betting on the downside.
On-chain metrics show that traders are heavily shorting around the $0.1635 level, with $51.06 Million worth of short positions built over the past seven days.
Meanwhile, $0.185 is another key level where traders are over-leveraged, having formed $134.15 Million worth of short positions.
Looking at traders’ bets, it appears that bears are dominating the asset and are capitalizing on the bearish market sentiment.
