Dogecoin, the largest memecoin, has been in a downtrend for over 90 days but is now showing signs of a potential breakout. Whales have shown a strong interest in DOGE, with over 800 million coins being bought recently, leading to a surge in investor confidence. The price of DOGE has reached its trendline resistance and appears to be breaking out, potentially reversing its bearish trend and reaching the next resistance level at $0.17.
On-chain metrics also support a bullish outlook for DOGE, with exchanges witnessing an outflow of 49.89 million coins over the past four trading days, indicating potential accumulation and triggering buying pressure. In the derivatives market, bullish traders dominate, with 54% of top traders going long on DOGE, further supporting the memecoin’s potential breakout.
If DOGE continues to rise and breaches the descending trendline, it could see a 7.5% increase in price and potentially reach the $0.17 mark. However, if it fails to break above the trendline, the price could decline towards key support levels. Currently, DOGE is trading below the 200-day Exponential Moving Average on the daily time frame, indicating a bearish trend with sellers dominating the market.
Overall, the recent increase in whale activity, rising investor confidence, and bullish sentiment in the derivatives market suggest that DOGE may be on the path to a potential breakout. With strong on-chain metrics supporting further upside potential, investors are closely watching to see if DOGE can maintain its momentum and breach its prolonged trendline resistance. If successful, DOGE could see a significant price increase in the near future.
