Dogecoin's price appears to be on the rise despite recent sell-offs by traders who sold a staggering 155 million DOGE tokens at a loss. Analytics from Santiment suggest that this capitulation might be a sign of a local bottom, allowing for potential accumulation among long-term holders. Following a rough week, Dogecoin has reached a five-day high of $0.19, which comes as the broader altcoin market experiences a similar surge, adding $100 billion to crypto market capitalization as of June 10.
Data indicates a robust increase in trading volume, surging 74% to $1.24 billion in just 24 hours. The Network Realized Profit/Loss (NPL) metric highlights that the sell-off, which incurred a loss of approximately $29 million at a DOGE price of $0.18, may lead to a bullish trend as weaker investors exit the market. Historical patterns show that such instances can be favorable for price reversals, suggesting the potential for Dogecoin to regain momentum.
Interestingly, while weaker hands are selling, larger investors or 'whales' have been gradually accumulating DOGE. Addresses holding between 10 million and 100 million DOGE increased their assets from 23.8 billion to 24.93 billion DOGE over the past two weeks, which indicates strengthening confidence among significant holders. The combination of weakened selling pressure from smaller traders and whale accumulation suggests a favorable environment for a price increase.
Technical analysis reveals that Dogecoin is forming an ascending channel that may signal sustained buying pressure. The Relative Strength Index (RSI) indicates bullish momentum as long as it remains above the neutral mark of 50. If the upward trend continues, DOGE could potentially breach the resistance level at $0.20, targeting a rally towards $0.24, which represents a 26% increase. Conversely, should the price falter and break below the channel, a drop to approximately $0.168 is possible, posing risks for investors.
Data indicates a robust increase in trading volume, surging 74% to $1.24 billion in just 24 hours. The Network Realized Profit/Loss (NPL) metric highlights that the sell-off, which incurred a loss of approximately $29 million at a DOGE price of $0.18, may lead to a bullish trend as weaker investors exit the market. Historical patterns show that such instances can be favorable for price reversals, suggesting the potential for Dogecoin to regain momentum.
Interestingly, while weaker hands are selling, larger investors or 'whales' have been gradually accumulating DOGE. Addresses holding between 10 million and 100 million DOGE increased their assets from 23.8 billion to 24.93 billion DOGE over the past two weeks, which indicates strengthening confidence among significant holders. The combination of weakened selling pressure from smaller traders and whale accumulation suggests a favorable environment for a price increase.
Technical analysis reveals that Dogecoin is forming an ascending channel that may signal sustained buying pressure. The Relative Strength Index (RSI) indicates bullish momentum as long as it remains above the neutral mark of 50. If the upward trend continues, DOGE could potentially breach the resistance level at $0.20, targeting a rally towards $0.24, which represents a 26% increase. Conversely, should the price falter and break below the channel, a drop to approximately $0.168 is possible, posing risks for investors.
