Dogecoin Surges 1.35% Amid Whale Accumulation and Bullish Sentiment

Dogecoin (DOGE) has shown signs of a strong bullish reversal after a prolonged downtrend, with its price action indicating significant upside potential. The memecoin was trading near $0.185, having recorded a modest price hike of 1.35% over the last 24 hours. This price movement was accompanied by rising participation from investors and traders, fueling the crypto’s recovery.

On the four-hour timeframe, DOGE faced resistance from a descending trendline but appeared to be slowly breaking out. According to chart analysis, if DOGE 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. However, if DOGE’s price fails to sustain itself above the $0.19-level, the consolidation may continue further.

On-chain metrics revealed that exchanges recorded outflows of DOGE worth $10.90 million, potentially hinting at accumulation by whales and investors amid the price dip. Such a substantial outflow, recorded within 24 hours, is a bullish sign and may lead to increased buying pressure and further upside momentum.

Traders have been strongly betting on long positions, with $0.1776 being 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, where traders built $14.89 million worth of short positions.

When combining these on-chain metrics with DOGE’s price action, it would seem that bulls have been dominant lately. This could allude to potential upside in the near term. However, it is worth noting that DOGE’s 200-day Exponential Moving Average (EMA) on the four-hour timeframe has been trading above the memecoin’s price, indicating that the asset may have been on a short-term downtrend.