Dogecoin (DOGE) Forms Strong Technical Setup, But On-Chain Indicators Hint Otherwise
- WBOYOriginal
- 2024-08-17 00:32:10745browse
The world's largest memecoin Dogecoin (DOGE) is forming a strong technical setup along with the on-chain indicators suggesting that it is gearing up for a big impact on its price trajectory.
Dogecoin (DOGE) price is forming a strong technical setup, and on-chain indicators suggest it is preparing for a significant impact on its price trajectory. Here's a closer look at three key on-chain indicators that hint at DOGE's upcoming price movements.
Dogecoin (DOGE) price has been subject to strong market volatility and is down by 19% over the past month. Although DOGE participated in the crypto market rally in Q1 this year, it has corrected more than 50% from its 2024 high of $0.20.
At press time, Dogecoin (DOGE) is trading 1.44% down at $0.1015 with a market cap of $14.78 billion. Furthermore, on-chain indicators provide a clear picture of where the DOGE price will move going ahead, reported CNF.
Let's look at the three on-chain indicators that suggest a DOGE trajectory moving ahead.
1. High-Volume Dogecoin Transactions
Transaction activity is one of the most important metrics of the on-chain indicators hinting at the trader's interest in the cryptocurrency. As per the on-chain data, more than 983 large Dogecoin transactions, worth 5.56 billion DOGE, happened in the last 24 hours.
Although the trading activity is sizeable, it is still less than the seven-day high of 10.09 billion DOGE. A drop in the whale activity suggests an overall decline in the volume of transactions, which could be a bearish signal for DOGE. Amid the drop in whale participation, the market could become illiquid and more volatile, causing large price swings.
2. Concentration of Big Owners
There's a massive concentration of Dogecoins (DOGE) held by large holders, currently at 62%, which is another important indicator. This shows that several wallets control a sizeable portion of the entire supply. A high concentration among large holders can have two impacts. First, if these are long-term holders, they can promote price stability. However, if they decide to sell-off on the price surge, it can also create strong selling pressure!
The current concentration of DOGE ownership suggests that its price is highly susceptible to the actions of a small group of influential holders.
3. DOGE Netflows and Network Activity
The total Dogecoin exchange net flows and network activity provide greater insights about the DOGE price moving ahead. Although there have been some inflows into Dogecoin, the network growth seems to be on a decline, suggesting less participation from new investors. The stagnating user adoption puts a pause on the long-term growth of Dogecoin, which could put a pause to the DOGE price surge.
Currently, Dogecoin is facing strong resistance around its 100-day Exponential Moving Average (EMA) standing at $0.1073. If the DOGE price fails to overcome this resistance, it could 24% to retest its next weekly support at $0.0782, reported CNF.
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