DOGE is well-positioned to take advantage of continued volatility for a potential pullback. While several factors support this outlook, the adjustment may take longer.
Despite a 2% weekly decline, Dogecoin (DOGE) still leads the pack, with rivals trailing behind with a hefty 10% decline. Thanks to the recent parabolic rally, DOGE has soared above $0.14, reaching this level for the first time in two months.
Currently trading at $0.1383, DOGE appears to be mirroring Bitcoin’s movements, leading analysts to suspect that DOGE is still pulling capital away from BTC in this volatile market. There is.
If so, the underlying pattern could push Dogecoin above previous resistance levels soon, even though bearish mood prevails.
DOGE may be squeezed by rebound
Dogecoin is now at a critical crossroads. With a strong liquidity pocket at $0.144, a breakout of this range could trigger a short-term liquidation, forcing short positions to buy back DOGE and pushing the price higher.
During the recent bull cycle when BTC approached $70,000, DOGE posted daily gains of over 7%, while other meme coins struggled to gain traction and even Ethereum was lagging behind. .
These factors are certainly increasing optimism among traders.
Source: Coin Glass
As a result, long positions have dominated futures markets over the past 24 hours, with traders betting on a rebound. With DOGE’s market capitalization up 2% to $20.22 billion, traders holding long positions are encouraged by the possibility of a reversal and feel DOGE stands to benefit from the current volatility. There is.
So, if BTC continues to consolidate at these price levels and triggers a significant weekly rally in the top altcoins, history could repeat itself and Dogecoin could profit and potentially rise above $0.143. New resistance levels may be established.
This is consistent with common trading strategies in which traders view high-value altcoins as a more attractive alternative during periods of robust market risk. Given DOGE’s current position, it is not overly optimistic to suggest that capital could be pulled away from BTC. but,
something may be interfering with their efforts
Dogecoin is showing potential for a rebound as spot traders eagerly buy dips, but volatile order books among large holders could hinder progress.
Source: Into the Block
In recent days, large holders, especially whales that control 42% of the supply of over 66 billion DOGE, have entered the distribution stage. This change coincides with the recent 7% decline, pushing DOGE down to $0.131.
Read Dogecoin (DOGE) price prediction: 2024-2025
Although the selling effort didn’t last long, DOGE rebounded the next day with a 4% gain, although it still hasn’t fully recovered from the steep drop.
Therefore, caution is advised. Despite optimism about a potential rebound and overall volatility giving DOGE an edge, Dogecoin may struggle to seize this opportunity if this tier of holders does not cooperate. It will be essential to monitor their activities over the next few days.
Next: Ethereum weathers FUD storm: Analysts hint at bottom and possible recovery
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