Dogecoin [DOGE], the meme-inspired cryptocurrency, has shown an optimistic recovery after a recent drop. This could mean that the cryptocurrency markets are about to go up.
As of this writing, the price of Dogecoin is $0.1057, which is 6.7% more than it was a week ago. This rise, from a low point of $0.82 on August 5th, has sparked new investment interest and points to a possible change in how the market works.
In the last 24 hours, DOGE has gone up by a small 1.2%, staying above the $0.10 mark. This level of stability could mean that the product has a solid base level of support, which could lead to more growth.
Dogecoin Bullish Signal
“Trader Tardigrade,” a famous cryptocurrency analyst, has written an intriguing technical study of Dogecoin’s recent behavior. Tardigrade says that Dogecoin’s chart shows a critical breakdown of its monthly trendline support. This is a pattern that typically occurs before major rallies.
Tardigrade suggests that this movement in the charts points to cyclical behavior, where Dogecoin, after breaching a key support level, builds momentum for a substantial upward movement.Tardigrade emphasized that similar patterns in the past have led to vigorous bull runs, indicating that DOGE could be on the brink of another major bullish phase.
This setup, according to the analyst, prepares DOGE for a potential explosive movement upwards, akin to those seen in previous cycles where substantial gains followed similar breakdowns.Behind-the-scenes activities provide further insights into DOGE’s market behavior.
IntoTheBlock data shows that DOGE whales (large-scale holders) are active, but their behavior changes over time. On August 5, there was a big increase in whale activity, with over 1,500 large deals. This happened at the same time that Dogecoin’s price started to rise again. By August 12, this activity had dropped to less than 100 transactions. However, it has risen greatly today, surpassing 600 transactions.
This increase in whale action could mean that big holders are becoming more confident, which could help keep the price stable even more. Dogecoin holders are also making more money than users of other memecoins right now.
At the time of this writing, about 73% of Dogecoin holders are making money. This is a much higher percentage than the less than 60% of holders who are making money with rivals like Shiba Inu [SHIB] and Pepe [PEPE].Also, recent changes in Dogecoin’s Open Interest send mixed messages about what the market thinks will happen.
Open Interest has gone up by 2.38 percent to $485.62 million, which shows that the market is becoming more interested. However, Open Interest volume has gone down by 55 percent, to $651.52 million at press time. This difference could mean that even though new positions are being opened, the market as a whole is still being cautious, possibly waiting for clearer signs before committing more heavily.
