Dogecoin has been making headlines once again this week as it shows signs of a potential shift in momentum. The price of Dogecoin is currently hovering just below $0.26, experiencing a slight dip of 2.38% in the past 24 hours. However, despite this short-term drop, Dogecoin is still up by 10.7% over the past week, indicating a positive trend in the market.
The recent surge in Dogecoin price can be attributed to the increased activity of large holders, also known as whales. According to on-chain analyst Ali Martinez, major investors have accumulated over 30 million DOGE in a single day, signaling a renewed confidence in the popular meme coin. This accumulation by whales is a strong indicator of positive sentiment towards Dogecoin and has contributed to the recent bullish momentum.
In addition to whale activity, the anticipation of a spot Dogecoin ETF approval by the SEC is further fueling the rally. It is expected that applications from Bitwise and Grayscale will be approved later this month, following the successful launch of the Rex-Osprey $DOJE ETF in September. This development has drawn institutional attention to Dogecoin and has added to the positive momentum surrounding the cryptocurrency.
The current market sentiment is also being uplifted by the Uptober trend, attracting new capital flows into Dogecoin. Data from Arkham Intelligence shows a significant surge in Dogecoin outflows from centralized exchanges, with nearly $700 million worth of DOGE being withdrawn from platforms like Binance and Coinbase.
From a technical analysis perspective, Dogecoin is trading within a rising channel that has been in place since mid-June, signaling a shift in structure after breaking out of a long-term downtrend. The recent bounce from the lower channel line near $0.24 confirms strong support at that level. The price is now approaching short-term resistance at $0.27, with a potential breakout towards $0.30 if this level is breached.
The Relative Strength Index (RSI) is currently around 56, indicating moderate bullish momentum without being overbought. This suggests that there is room for further upside if buying volume continues to increase. However, if Dogecoin fails to break above $0.27, it may consolidate within the range of $0.24 to $0.26 before making its next move.
Overall, the current setup for Dogecoin leans towards a bullish outlook, with the potential for a breakout if key factors such as steady accumulation, healthy RSI levels, and positive sentiment persist. Investors and traders will be closely watching the price action of Dogecoin in the coming days to see if this momentum continues.