- On-chain data: Whale holdings surged by 493.15 million Dogecoin, significantly reducing their sales.
- Net longs heatmap reveals strong bullish sentiment at $0.101 with 4.154 million positions, overshadowing shorts.
Dogecoin recently displayed signs of a potential upward movement within the broader cryptocurrency market, which has been generally bearish. The coin’s price has been recording lower lows, but recent market activities indicate a shift toward accumulation.
At the beginning of the week, Dogecoin experienced a brief rise in its value. This temporary uptick suggests a possible trend toward sustained growth. Over the last five weeks, the cryptocurrency has primarily moved sideways, indicating stability after a period of volatility.
The Money Flow Indicator (MFI) and the Relative Strength Index (RSI) provide quantitative data supporting this potential upward trend. The MFI, which measures the inflow and outflow of money into an asset, increased from a value below 20 on August 5 to 63.87 currently.
The RSI, which tracks the speed and change of price movements, corroborates this accumulation by maintaining a level above its midpoint, indicating reduced selling pressure.
On-chain data reveals buying activity among Dogecoin’s largest holders. These investors added approximately 493.15 million Dogecoin to their holdings in the last two days, while sales decreased from 442.12 million Dogecoin to 78.17 million Dogecoin during the same period.
This shift from selling to buying among whales underscores a positive outlook on the memecoin value.
Additionally, the net longs heatmap shows a significant accumulation of long positions at a price level of $0.101, with around 4.154 million long positions recently observed at this price point.
In contrast, the count of net shorts was considerably lower, at 1.54 million, suggesting a prevailing bullish sentiment among investors.
Based on these observations by ETHNews, Dogecoin appears poised for a potential rally if current market conditions persist and no unforeseen negative events occur that could undermine investor confidence.
The growing accumulation by key investors, coupled with supportive technical indicators, points to an optimistic market sentiment for Dogecoin in the near term.
