After being in a downtrend for over 90 days, Dogecoin [DOGE], the largest memecoin, appears to be breaching its prolonged descending trendline.
This trendline has a strong history of triggering selling pressure, but this time, sentiment seems to be shifting as whale activity and trader confidence skyrocket.
Whales’ rising interest in Dogecoin
Over the past few days, whales have shown strong interest in the memecoin, leading to massive accumulation, as reported by a crypto expert.
Recently, the expert posted on X (formerly Twitter) that whales have bought over 800 million DOGE coins.
This post gained significant attention from crypto enthusiasts and raised the question of whether it’s the right time to buy DOGE.
At press time, DOGE traded near $0.157, gaining 2.25% in the last 24 hours. During the same period, participation from traders and investors surged, leading to a 5% jump in recorded trading volume.
Dogecoin momentum builds on price charts
AMBCrypto’s technical analysis confirmed that DOGE reached its trendline resistance for the fifth time and appeared to be breaking out.
Historically, this level has consistently acted as a sell-off zone, as the price of the memecoin has repeatedly fallen from this point.
Considering the current market sentiment and historical patterns, this level now appears to be a make-or-break point for the memecoin.
On the daily time frame, if the memecoin’s price continues to rise and breaches the prolonged descending trendline, it could reverse DOGE’s bearish trend, with the price potentially soaring by 7.5% to reach the next resistance level at the $0.17 mark.
On the other hand, if DOGE fails to break above the trendline, history may repeat itself, and the price could decline toward the key support area.
As of the 17th of April, the memecoin was trading below the 200-day Exponential Moving Average (EMA) on the daily time frame, indicating that the asset is in a bearish trend with sellers currently dominating.
$50 million of outflows
On top of that, DOGE’s bullish outlook was further supported by on-chain metrics.
Data from on-chain analytics firm Coinglass revealed that exchanges have witnessed an outflow of 49.89 million DOGE coins over the past four trading days.
This substantial outflow indicated potential accumulation and could trigger buying pressure and a further upside rally, which the market is currently witnessing.
Bulls dominate derivatives market
Meanwhile, derivatives data showed growing conviction among bullish traders. Notably, DOGE’s Long/Short Ratio stood at 1.17, with 54% of top traders going long versus 45.99% short.
When combining these on-chain metrics, it appears that bulls are currently dominating the asset and seem to be supporting DOGE in breaching its prolonged trendline.
Source: AMBCrypto / Digpu NewsTex