Dogecoin Surges 4% as Investors Accumulate, Bullish Double-Bottom Pattern Emerges

Coin WorldFriday, Jan 31, 2025 6:20 am ET
1min read

Dogecoin (DOGE) has been displaying robust bullish momentum, with its price trading at $0.33, marking a 4.05% increase over the past 24 hours. This upward trend is accompanied by an 8.5% surge in trading volume, indicating heightened market activity. Notably, exchange outflows have reached $11.5 million, suggesting investor accumulation and potential upward price pressure.

Technical analysis reveals a promising bullish double-bottom pattern forming on daily timeframes, with key support at $0.31. If this support level holds, there is potential for a 25% price increase to $0.41. Open interest in Dogecoin has climbed back above $4 billion, with Gate.io leading the way at $1.64 billion (41% of total), indicating renewed trader confidence.

Market sentiment is predominantly bullish, with 53.5% of traders holding long positions compared to 46.5% short positions. Trading volume data shows strong accumulation patterns, and the Relative Strength Index (RSI) stands at 45, suggesting room for further upward movement before reaching overbought conditions.

The immediate challenge for DOGE is to break above the daily candlestick resistance at $0.3316. A successful breach of this level could open the path to further upside momentum, provided buying pressure maintains its current strength. In the short term, DOGE has gained approximately 7% since bouncing off its multi-week support level at $0.31, with increasing volume lending credibility to the move.

Trading volume analysis shows consistent accumulation patterns, with outflows from exchanges suggesting longer-term holding behavior among market participants. This metric often precedes sustained price movements in the cryptocurrency market. A key technical development is the price action around the $0.31 support level, which has proven resilient during recent market fluctuations, strengthening its importance as a technical reference point.

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