Dogecoin (DOGE) has once again captured the spotlight. Over the past week, this memecoin has danced its way into the hearts of bullish investors, defying skeptics and proving that even a Shiba Inu-inspired digital asset can make waves. But is this upward momentum sustainable, or are we about to witness a bearish retracement? Let’s delve into the data and explore the intricacies of Dogecoin’s recent performance.
The Bullish Run: A Recap
Exactly one week ago, Dogecoin faced headwinds as it grappled with sell pressure stemming from the end of September. However, a surprising twist occurred: the bulls rallied behind DOGE, propelling it to new heights. As of now, DOGE stands at a press time price of $0.135—a remarkable eight consecutive days in the green. But as any seasoned trader knows, momentum can be fickle, and profit-taking looms large for those who entered the market near its recent lows.
The Relative Strength Index (RSI) now signals overbought conditions, and DOGE has breached the initial resistance level near $0.128. The next hurdle lies around $0.140. But what’s driving this surge, and can it be sustained?
Unmasking the Whales: On-Chain Insights
Dogecoin’s recent performance isn’t a mere fluke. On-chain data reveals a fascinating story—one involving the behemoths of the crypto sea: the whales. These large holders have been making waves, and their involvement is crucial to understanding DOGE’s trajectory.
Whale Flows
On a fateful Thursday, DOGE’s large holder flows surged dramatically, with inflows peaking at a staggering 1.17 billion DOGE. Simultaneously, large holder outflows reached $640.1 million DOGE during the same session. The net result? A positive flow of over $71 million from these heavyweight players. Despite rising prices, robust demand persists among the whales, hinting at further upside potential—provided sell pressure doesn’t intensify.
HODLers and Cruisers
But what about the retail crowd—the everyday enthusiasts who hold DOGE for the long haul? HODLer balances dipped slightly from 72.97 billion coins on October 12th to 72.17 billion DOGE on October 18th. Meanwhile, cruiser balances followed suit, declining from 74.89 billion coins to 73.77 billion coins over the same period.
Retail Traders Step Up
Interestingly, retail traders absorbed any potential downfall. Their balances grew from 8.75 billion DOGE to 10.74 billion DOGE during the same timeframe. It seems the retail segment remains steadfast in its support of Dogecoin, contributing to the bullish momentum.
The Whales’ Dilemma
As we gaze into the crystal ball, we confront a paradox. While some whales and swing traders have been cashing in on the way up, the retail crowd’s unwavering demand has bolstered DOGE. Yet, without substantial accumulation by the whales, the bullish momentum may plateau. So, dear reader, whether this scenario is realistic or not, let’s ponder Dogecoin’s market cap in BTC terms.
In conclusion, Q4 2024 sees growing confidence among Dogecoin holders. Whether it’s a moonshot or a meme, DOGE continues to defy expectations, leaving us all wondering: “What’s next, Dogecoin?” 🚀
