DOGE crypto sees major whale activity with 600M DOGE ($231M) transferred between unknown wallets, fueling market interest.
A confirmed breakout on the 8-hour bullish flag pattern suggests potential price gains, while the long/short ratio chart reveals shifting trader sentiment.
Significant Whale Transactions and What it Means for DOGE Crypto
Two major Dogecoin transactions occurred, shifting 600 million DOGE, or approximately $231 million.
The first transaction saw an unknown wallet transfer 400 million DOGE ($154m) to another unknown wallet.
Then, shortly after, another 200 million DOGE – worth around $77 million – was transferred between different unidentified wallets.
These transactions bore no relation to exchanges or institutional entities, which is what keeps them interesting for analysts and traders.
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Whale activity is often linked to such large scale movements, perhaps to accumulate, to redistribute, or to prepare for price actions of importance.
The secrecy surrounding these transfers is compounded by the fact that they avoided exchanges.
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These transactions occurred at the same time as uptick in trading activity and price volatility on the Dogecoin’s market.
Dogecoin traded between $0.3747 and $0.4205 in the past 24 hours, closing at $0.4112, a 7.35% daily increase.
If this price reaction means this whale’s movements have some correlation with market sentiment, then the fact that these big transfers impact short term price dynamics makes sense.
Activity of this kind is monitored closely by traders, who seek to view activity as a sign of impending market change and a clue as to what the holders of crypto with this much influence are attempting to do.
Dogecoin Bullish Flag Breakout Analysis
On its 8 hour chart, Dogecoin has recently confirmed a bullish flag breakout. It is likely to push the price upwards.
After DOGE rallied from $0.06 to $0.09 initially before beginning to consolidate, the bullish flag was formed.
This was all done within a down trending channel. It is a classic structure indicating the continuation of an existing bullish trend.
A breakout from the upper boundary of the flag pattern together with successful retest strengthens the bullish signal.
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The height of the flagpole is the extent of the previous rally. Analysts are looking for a move toward $0.11-$0.12.
Dogecoin now has main resistance at $0.08, breakout zone and a short term hurdle may be positioned near $0.10.
Rising volume on the breakout is a momentum indicator that the move upwards has not yet paused.
Traders are looking to see if that sustained buying pressure holds to confirm it is continuing on the upside.
Given the recent whale activity, this technical development falls right in line with the short term price gain outlook. It solidifies the price gains yet to come.
Long/Short Ratio Trends of Dogecoin
The long/short ratio for doge over the last two week shows how trader sentiment shifted, and like many crypto assets, the market is highly speculative in nature.
It shows where the balance is with respect to long positions (longs) vs. short positions (shorts) through taker buy vs. taker sell volume.
But there is one interesting element to the ratio, as it tended to stay around 1.0, suggesting that control of the market was balanced between bulls and bears.
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When the ratio was below 0.95 bullish sentiment was apparent, as in January 13th when short dominance took place.
On the other hand, there was a bullish phase when the ratio was above 1.05 at January 10 and at January 15 when the buy-side activity prevailed.
These wiggles show the volatility of Dogecoin’s market due to the rapidly shifting sentiment in the leveraged trader crowd.
The dominance alternatively of longs and shorts leads to the conclusion that the market participants are very uncertain.
Traders seem to be quick to turn around on prices and external news flows, making moves regularly into and out of positions.
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