Dogecoin (DOGE), the meme-inspired cryptocurrency with a loyal following, has been on a wave of optimism lately. Over the past week, its price rose almost 8%, much to the delight of investors. However, a recent move by a large DOGE holder has cast a shadow of uncertainty over the future price trajectory of this playful pup.
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Dogecoin boosted by market bulls and short squeeze
The Broadest Crypto Market sentiment has been bullish Recently, and DOGE has been happily wagging its tail. Last week saw a significant price increase and good times seemed to be coming with a 3% increase in the last 24 hours alone.
This pushed the price of DOGE to a cheerful $0.152, putting smiles back on the faces of many investors who have been patiently waiting for a sustained rise.
The party was not limited only to the spot market. The derivatives market also saw a notable increase in activity, with Dogecoin Futures Open Interest jumping a healthy 9%.
This suggests renewed interest from traders, particularly those looking to capitalize on potential price movements through futures contracts.
To add fuel to the fire, short sellers have been feeling the pressure lately. According to Coinglass, they have faced settlements totaling $2.27 million.
This could potentially trigger a short squeeze, a scenario where short sellers are forced to buy back DOGE to cover their positions and drive the price up further. However, this positive development depends on whether it can overcome potential selling pressure stemming from a recent whale move.
Whale alert: big transfer sparks speculation
Just when things were looking good for DOGE, a transaction involving a whale caused waves of concern in the Dogecoin community. Whale Alert Data revealed that a whopping 200 million DOGE, valued at around $30.86 million, was transferred to the Robinhood trading platform.
This major move has raised eyebrows, with many suspecting that the whale could be preparing to cash out a significant portion of its holdings. A large sell-off could introduce significant selling pressure, which could derail DOGE's current bullish momentum.
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Technical analysis: last minute trends and possible setbacks
Taking a look under the hood from a technical point of view, DOGE appears to be attempting to break its daily downtrend. This is a positive signal for the bulls, indicating a possible change in market sentiment. Further analysis reveals that DOGE recently entered an order block, which has contributed to its continued price rise.
Featured image from War History Online, chart from TradingView
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