Dogecoin has experienced a significant price increase, with its 50-day SMA rising, indicating a potential opportunity for new buyers. Despite being in overbought territory, 80% of Dogecoin holders are still profitable, indicating strong demand at low prices. Recently, DOGE’s large inflows have outpaced outflows, helping the coin maintain profits despite increasing selling pressure.
Dogecoin (DOGE) has recently attracted market attention due to its impressive bullish trend and market movements. In an X post on Wednesday, Crypto Daily Trade Signals highlighted that the 50-day simple moving average (SMA) is rising, meaning there are opportunities for new buyers.
#Dogecoin One of the strongest signs of a bullish trend is the rising curve of the 50-day simple moving average, which could be a good period for buyers to get in on the action. However, traders are holding back as the 200-day SMA has fallen. pic.twitter.com/l5qybDoX3n
— Cryptocurrency Daily Trade Signal (@cryptodailyTS) October 23, 2024
In the past two weeks alone, Dogecoin may be one of the best performers in the past two months. DOGE is currently trading at $0.1367, $27.91 higher than its October low. Despite Dogecoin’s recent recovery, it currently faces resistance at $0.141, a level that often proves difficult for bulls to break out of.
Dogecoin positive sentiment
In the past, this price range has been problematic, and current market data shows that DOGE’s Relative Strength Index (RSI) is currently in the overbought zone. The Money Flow Index (MFI) also showed a weak downward trend, indicating that some traders may start taking profits.
Source: TradingView
Still, despite the growing resistance, the overall sentiment among Dogecoin holders remains mostly positive. IntoTheBlock’s analytics platform suggests that 80% of addresses are green and 16% are red. This speaks to demand at low prices. This helped provide resistance to DOGE prices as some traders become a little more cautious in their trades.
Furthermore, important major shareholder movements have been confirmed in the past few days. Deposits to addresses holding 100 or more Dogecoins increased from 274.5 million to 1.08 billion DOGE between October 20 and 21. Although large outflows have also increased, total inflows remain high, which is why prices have managed to sustain themselves during the recent rally. More selling pressure.
Source: Into the Block
Rapid increase in DOGE outflow
According to the exchange’s data, outflows reached a high of 422.56 million DOGE on October 21, while inflows were only 371.71 million DOGE. With Dogecoin near recent highs, traders are waiting for a signal whether the price will continue to rise or whether investors will take profits and cause a drop soon.
Source: Into the Block
Although Dogecoin has a very strong bullish trend, mixed signals from market indicators and rising resistance levels indicate that the situation should be approached with caution. RSI and MFI indicators are showing signs of a potential cooling period, but large holders are neutral on the buy/sell balance. The next few days will be critical to whether Dogecoin continues its upward momentum or reverses in the short term.
