Dogecoin News Today: Whales Move, Charts Shift—Why Dogecoin’s Pause May Signal a Surge

Dogecoin has shown early signs of a potential short-term rally following a breakout from a triangle pattern, increased whale activity, and a rise in short-term holder supply. At $0.224, the cryptocurrency has gained 7.7% in the last 24 hours, signaling a shift in momentum after a period of consolidation. On-chain data indicates that the recent price action may be the beginning of a more bullish trend, particularly if key resistance levels are successfully breached.

One of the most notable developments is the accumulation by whale investors. On September 7, a wallet that had been inactive for two years withdrew 10.366 million DOGE from Binance, valued at approximately $2.25 million. This move is seen as a bullish signal, as sustained whale activity often correlates with increased market demand and price appreciation. Analysts suggest that such accumulation may indicate strategic positioning ahead of a potential upward move in the asset’s value [1].

Technical indicators also support a case for optimism. Trader Tardigrade, in an analysis on X, noted that Dogecoin appears to be breaking out of a triangle pattern on the 4-hour chart. A successful breakout, particularly above the $0.224 level, could trigger further gains, with the next target potentially at $0.24. This pattern is often considered a precursor to a more extended bullish phase, especially after a period of consolidation [1]. Additionally, the OBV (On-Balance Volume) has been trending upward over the past ten days, reflecting increasing buying pressure and reinforcing the technical case for a short-term rally.

Another key factor is the rise in short-term holder supply, which has been historically associated with bullish market conditions for Dogecoin. Joao Wedson, founder of Alphractal, pointed out that higher STH (Short-Term Holder) supply levels are an indicator of accumulation by active traders. This trend suggests that market participants are beginning to take a more bullish stance, even though volatility remains a factor [2].

Despite these positive signs, challenges remain. Dogecoin has traded within a range since March, with the upper bound at $0.25 acting as a significant resistance level. Breaking through this could unlock the next phase of bullish momentum. However, the path to this level will likely be non-linear, with potential pullbacks and consolidation phases. Investors are advised to remain cautious but to consider stacking DOGE as part of a long-term strategy, given the improving on-chain and technical fundamentals.

The recent price action has also been supported by narrowing Bollinger Bands, which have started to expand after a period of tight consolidation. Over the past three days, the price has moved sharply higher, rising 9.71% since hitting a low of $0.212 on September 6. This suggests that the market is beginning to react to the accumulation and technical signals, with momentum building for a potential breakout.

Source:

[1] Dogecoin price prediction - Whales' buying spree, a new ... (https://ambcrypto.com/dogecoin-price-prediction-whales-buying-spree-a-new-breakout-and-odds-of-hitting-0-25/)