Recent bullish momentum for Dogecoin (DOGE) has been highlighted by key on chain metrics. On the Global In/Out of the Money indicator, the cryptocurrency looks well configured for potential upward movement, as the current trading conditions don’t include any strong selling clusters.
Dogecoin addresses are ‘in the money’ meaning they’re held at a profit and today, roughly 73 percent are so. Usually this represents a high percentage of profitable holders and that warns that less and less investors feel the pressure to sell their positions at a loss which often implies less chances of big sell offs.
Dogecoin Trading Activity Surge
In contrast, 24% of the addresses are in the “out of the money” category, and another decrease in risk of significant selling pressure in the short term. But there has also been an amazing increase in trading activity with past 24 hours clocking in 11.4 billion DOGE.
Across all cryptocurrencies, this spike in trading volume, both large and small, indicates heightened willingness to buy or sell. In fact, such large transactions preceded price movements, suggesting that institutional players may be setting themselves up for a price rally.
According to market analysts, if DOGE follows its upward path, it may hit the important $0.17 mark, which would see stronger selling pressure there. This threshold will certainly have traders watching it closely, as a successful breach can open the door to a longer term rally.
However, any push above this price point may dip into balance, or a pullback or consolidation period, as DOGE pursues momentum. With the cryptocurrency market progressing, how these metrics will work in conjunction to dictate Dogecoin’s fate will matter.
Waiting to see whether DOGE can solidify its position within the more and more competitive cryptocurrency space, investors are cautiously optimistic. As institutional interest begins to ramp back up, we could see exciting changes for Dogecoin occurring in the coming weeks.
