Although volatility is beneficial, Doge's success depends on the cooperation of large holders; without cooperation, the opportunity may slip away. More information Crypto Dumplings
Although it fell by about 1.4% this week, Doge [DOGE] remains in the lead, while its competitors have fallen sharply by 10%. Benefiting from the recent parabolic rise, DOGE has soared to over $0.14, a level it has not reached in two months.
Doge's current trading price is $0.14166, and it seems to be mimicking Bitcoin's trend, which makes us wonder whether Doge is still attracting funds away from BTC in this volatile market.
If this is indeed the case, the potential pattern may soon push Doge to break through its previous resistance, even in the face of a generally bearish sentiment.
Doge may be squeezing the rebound space
Now, Doge is at a critical moment. Due to the strong liquidity at $0.144, a breakthrough in this range may trigger short-covering, forcing those holding short positions to buy back Doge, potentially driving up the price.
During the recent bull market cycle, when BTC nearly reached $70,000, Doge's daily gains exceeded 7%, while other memecoins struggled to gain attention, and even Ethereum lagged behind.
These factors have undoubtedly boosted traders' optimistic sentiment.
Therefore, in the past 24 hours, the long positions in the futures market have dominated, with traders betting on a rebound. As Doge's market capitalization has increased by 2% to $20.22 billion, traders holding long positions are incentivized by the potential for reversal, allowing Doge to benefit from the current volatility.
In short, if BTC continues to consolidate at these price levels, thereby creating a trend of significant weekly gains for the top Altcoins, history may repeat itself, allowing Doge to seize the opportunity and potentially rebound, establishing a new resistance above $0.143.
This is in line with a common trading strategy, where traders view high-market-cap Altcoins as more attractive alternatives when market risk is high. Given Doge's current positioning, it is not overly optimistic to believe that it may siphon capital away from BTC.
Something may have disrupted their efforts
While Doge shows signs of a rebound as spot traders eagerly buy the dip, the unstable order book of large holders may hinder progress.
Over the past few days, large holders (especially whales, who control over 42% of the supply of 66 billion Doge) have entered the distribution phase. This shift coincides with the recent 7% decline, causing Doge to fall to $0.131.
Although their selling efforts were temporary, Doge rebounded and gained 4% the next day, but it has not fully recovered from the significant sell-off.
Therefore, caution is necessary. While people are optimistic about the potential rebound, and the overall volatility gives Doge an advantage, if this group of holders does not cooperate, Doge may struggle to seize this opportunity. Monitoring their activities in the coming days will be crucial.
Doge price analysis suggests it will break free from large-scale hoarding
Doge price forecasts show that the current pullback may be a result of the significant rebound that began in mid-October. Doge's price soared from $0.10 to a high of $0.149, a gain of 48%.
The TradingView chart shows that this rally broke through the key $0.12 resistance, ending Doge's 4-month accumulation. If the trend continues, buyers may drive a 36% gain and reach the $0.00002 barrier.
The recent bullish crossover between the 50-day and 200-day EMAs may increase buyers' dominance over the asset, leading to a sustained uptrend.
Conversely, if the retest phase fails to maintain the breakout trend line of the aforementioned triangle, sellers will strengthen their control over the asset for a long-term consolidation.
In summary, Doge is in a favorable position to leverage the ongoing volatility to achieve a potential rebound, and some factors support this view, but other factors may require more time to adapt. However, its price is currently maintaining a key level of $0.000012, and the bullish crossover will lead to a sustained uptrend.
