Dogecoin [DOGE] has recently surged by 50%, but has been hovering around the important level of $0.25 for the past three days. According to blockchain analysis tools Coinglass and IntoTheBlock, Dogecoin's performance has attracted the attention of many traders and investors.
Even more surprisingly, IntoTheBlock data shows that the volume of large transactions in Dogecoin over the past 24 hours (these transactions are usually associated with large investors or institutions) surged by 41.12%. As interest from whales and institutional investors continues to grow, the daily active addresses for Dogecoin also skyrocketed by 34.91% during the same period.
75% of traders are long on DOGE
Coinglass data shows that bullish bets on Dogecoin have surged sharply. As of the time of writing, the Binance DOGEUSDT long-short ratio is 3, indicating strong bullish sentiment. This means that for every 3 long positions on the Binance platform, there is 1 short position.
Moreover, 75.08% of DOGE traders on Binance hold long positions, while only 24.92% hold short positions.
Despite these on-chain indicators being bullish, the price of Dogecoin (DOGE) still seems to struggle to gain upward momentum. As of the time of writing, Dogecoin (DOGE) is trading near $0.2276, having dropped 8.40% in the past 24 hours. During the same period, its trading volume decreased by 10%, indicating a decline in participation among cryptocurrency enthusiasts compared to the previous day.
Price trends and key levels of Dogecoin
Expert analysis indicates that Dogecoin [DOGE] has been hovering around the important level of $0.25 for the past three days.
This raises curiosity: will Dogecoin drop back like before, or is it just a temporary adjustment?
Remember the last time Dogecoin rose to this level, many people rushed to sell, and it ended up dropping. Will it be the same this time? Or do buyers have the strength to push the price up this time?
If DOGE continues to consolidate and the daily closing price is below $0.22, a downward momentum may occur in the coming days.
However, if market sentiment shifts and DOGE breaks through the resistance level, closing above $0.255, an upward trend may emerge. This could push the memecoin towards the next resistance level of $0.30, potentially gaining 20%.
