- On-chain metrics revealed that exchanges recorded outflows of DOGE worth $10.90 million
- Traders appeared to be over-leveraged at $0.1776 on the lower side and $0.1868 on the upper side
After a prolonged downtrend, Dogecoin (DOGE) flashed signs of a strong bullish reversal, with its price action indicating significant upside potential.
In fact, on the four-hour timeframe, the memecoin seemed to face resistance from a descending trendline. At the time of writing though, it appeared to be slowly breaking out.
On the charts, DOGE was trading near $0.185, having recorded a modest price hike of 1.35% over the last 24 hours. After a bout of downside momentum, the memecoin saw rising participation from investors and traders. This finding fueled the crypto’s recovery, with DOGE’s trading volume climbing by over 15% too.
Dogecoin (DOGE) price action and technical analysis
According to AMBCrypto’s chart analysis, DOGE could soon be poised for significant upside on the charts.
On the four-hour chart, the memecoin was consistently facing resistance from a descending trendline. However, after consolidating for nearly three days, DOGE seemed to be breaking out of both the trendline and the consolidation pattern at press time – A bullish sign for the memecoin.
Source: Trading View
Dogecoin price prediction
Based on its recent price action and historical patterns, if the memecoin successfully breaks out of the trendline and closes a daily candle above the $0.19-level, there is a strong possibility that it could see a massive 32% upside move.
On the other hand, if DOGE’s price fails to sustain itself above the $0.19-level, the consolidation may continue further.
Worth noting, however, that DOGE’s 200-day Exponential Moving Average (EMA) on the four-hour timeframe has been trading above the memecoin’s price. This indicated that the asset may have been on a short-term downtrend.
On-chain metrics flash bullish signals
Given the prevailing market sentiment, traders and investors have shown strong interest in the memecoin, with some taking long positions and others accumulating tokens.
DOGE outflows worth $10.90 million!
Coinglass’s Spot inflow/outflow data revealed that exchanges across the crypto landscape saw significant outflows of $10.90 million in DOGE. Such a substantial outflow, recorded within 24 hours, potentially hinted at accumulation by whales and investors amid the price dip.
Source; Coinglass
Such a notable outflow ahead of a breakout is a bullish sign and may lead to a hike buying pressure and further upside momentum.
$27.5 million worth of bullish bets
Meanwhile, traders have been strongly betting on long positions. At press time, $0.1776 was the key level where traders seemed to be heavily over-leveraged, with $27.47 million worth of long positions built.
On the other hand, $0.1868 could be another over-leveraged level on the upper side. One where traders built $14.89 million worth of short positions.
Source: Coinglass
When combining these on-chain metrics with DOGE’s price action, it would seem that bulls have been dominant lately. It could also allude to potential upside in the near term.
