Dogecoin (DOGE) is somewhat out of sync with Bitcoin and Binance Coin (BNB) – two coins that have just set new historical peaks – indicating that the potential for DOGE to explode in the short term is quite low.
In the past 24 hours, at the time of writing, DOGE has decreased by 9.2%, while other cryptocurrencies in the top 10 by market capitalization continue to accelerate.
Despite having increased by 13.8% in the past month, DOGE still struggles to regain previous peak levels, in contrast to BTC and BNB - which just reached a new record last week - and Ethereum (ETH), which is now approaching its historical high.
Chart analysis shows that the main cause comes from the outflow of liquidity. When investors sell DOGE, the capital has flowed to BTC and BNB instead of returning to DOGE.
DOGE
Source: TradingView
For example, from May 10 to June 22, DOGE decreased by 39%, confirming the trend of capital outflow. In contrast, BTC only decreased by 3.72% and BNB decreased by 7.06% during the same period.
Although all three assets recovered afterward, the rebound level of DOGE was only enough to bring the price back to break-even, while BTC and BNB recorded much stronger increases.
Capital inflow reached a high level
In the past week, 'whale' addresses – known for large volume transactions – have accumulated 2 billion DOGE worth 480 million dollars. This strong accumulation indicates a very high price breakout potential.
Investors in the spot market also participated, according to the net flow data from spot exchanges from CoinGlass, with an additional 32 million dollars, bringing the total capital inflow into DOGE to over 500 million dollars.
This sustained buying momentum could help DOGE prepare for one of the largest breakouts in the upcoming trading sessions.
DOGE is stuck between important price zones
The liquidation chart from CoinGlass shows that DOGE is trading within two main price clusters.
The upper price cluster could act as a supply zone, triggering selling pressure if challenged. Conversely, the lower price cluster could be a demand zone, pushing the price up if touched.
DOGE
Source: CoinGlass
With the overall market uptrend and strong accumulation from 'whales', DOGE is likely to continue its upward trend.
However, if the price moves into the upper liquidity zone, strong selling pressure may emerge before DOGE can attempt to conquer higher peaks.