Three Positive Indicators for Dogecoin as DOGE Faces Major Resistance Levels

Quick Summary

• Dogecoin’s recent price surge has come to a halt, yet on-chain metrics indicate the possibility of upcoming gains.
• A significant bullish indicator is the extensive DOGE acquisitions by large holders, totaling over a billion in the last month.

Increased Activity

Renowned cryptocurrency analyst Ali Martinez highlighted in a recent update the rising engagement levels for the leading meme currency. He observed a marked increase in active addresses, transaction volume, and particularly whale participation. Martinez concluded that these trends represent “bullish signals that may lead to further upward movement.”

In previous analyses, the importance of a growing number of active addresses and transaction activity on a given blockchain has been underscored. A notable instance was Bitcoin, where a decline in activity led to a price drop earlier this year. It surged past $100,000 only after a recovery in these metrics.

Regarding whale activity, Martinez reported that these major market players have amassed over a billion DOGE in just one month. Given the current price of Dogecoin, approximately $0.225, this accumulation represents over $220 million.

What Lies Ahead for DOGE?

The value of the meme coin dropped significantly during the first quarter, reaching a low of $0.13 in early April. It traded around $0.16 for an entire month before experiencing a dramatic rise, reaching $0.26 by May 11.

After this peak, the price faced a significant setback, resulting in a 13.5% decline. Martinez noted that DOGE is now attempting to navigate through a critical resistance level and successfully breaking through it could potentially initiate a new upward trend.

Crypto Thies anticipates a prolonged phase of consolidation and a possible retest of the support zone between $0.20 and $0.21. Should this support hold, it could pave the way for a surge towards $0.30.