Dogecoin has faced significant pressure as the cryptocurrency market has experienced an extended downturn over the last two months. However, despite the bearish trend, increased accumulation by large investors and rising user activity indicate a potential bullish momentum.
According to data from Santiment, the number of wallets holding at least one million Dogecoin has been increasing steadily. This suggests that institutional and large-scale investors are confident about a potential price recovery in the coming weeks.
Additionally, Dogecoin’s active addresses have surged to a four-month high, exceeding 150,000 daily transactions. This increase highlights the growing adoption of Dogecoin and its expanding use in financial transactions.
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Technical Indicators Signal Crucial Price Levels for Dogecoin
Dogecoin is currently testing a significant support level of around $0.167, aligning with the 0.618 Fibonacci retracement level and an ascending channel. According to crypto analyst Ali Martinez, maintaining support at this crucial level could be essential for Dogecoin’s price action.
Historically, Dogecoin has shown strong rebounds from similar trendlines, often leading to substantial price gains over a short period.
Source: @ali_charts
If the buying pressure remains strong at this level, Dogecoin could surge toward $0.35 in the coming trading sessions. A price breakthrough of this resistance point will strengthen bullish trends and push Dogecoin’s value to rise even higher.
Failure of the support level to maintain its position could potentially trigger more sales, thus causing Dogecoin to fall to $0.11. The price dip at this point would likely extend the bearish period, affecting the meme-based cryptocurrency market.
The current price fluctuations in Dogecoin are significantly impacted by market liquidity throughout its upward and downward movements. The current liquidation reports indicate that short-term liquidations often appear when Dogecoin’s price undergoes unexpected upward movements.
Market volatility rises when long liquidations occur during reduced prices between the $43.14 million and $86.29 million key levels. The total price trajectory of Dogecoin feels the effects of critical liquidation points, which stand at $43.14 million and $86.29 million.
Traders and investors closely monitor Dogecoin’s movement around its current support level for signs of a potential reversal. With increasing accumulation, growing adoption, and critical technical indicators, Dogecoin’s next major price move could be highly significant.
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