Dogecoin (DOGE) has recently exhibited signs of recovery, challenging the $0.11 resistance after intense volatility. The cryptocurrency, which typically mirrors broader market trends and the movements of major cryptos like Bitcoin, has recently seen its price struggle to maintain the pivotal $0.10 mark.
The technical sentiment on Dogecoin is mixed. A daily bear pennant is developing indicating potential further declines. This setup is typically a continuation pattern which means that the prior downtrend may resume.
On the 4-hour chart, Dogecoin’s price action revealed a clear uptrend where it rebounded from around $0.106 to test the $0.109 level; this was part of a larger recovery effort after falling below the critical $0.10 support level. There is immediate resistance at $0.109, breaking which could lead to a test towards $0.11.The Relative Strength Index (RSI) on the 4-hour time frame chart has gone above midline at now hovering around 50 indicating balanced but possibly turning bullish momentum.
Nevertheless, even though there were positive developments captured by the rising MACD histogram bars that signal a waning bearish momentum, the Moving Average Convergence Divergence (MACD) on the daily chart continues to dwell in bearish territory thus implying that the recovery might still be fragile as well as short-lived., While the MACD line remains below the signal line despite a fall in negative histogram bars showing a decrease in downward pressure.
This would negate any bearish outlook and make DOGE solidify its recovery phase if current momentum persists and it breaks through beyond the resistance point at $ 0.11.However, the inability to hold above these levels may see DOGE retest lower supports at $0.106 with more downward risks in case broader market sentiments deteriorate.
However, Dogecoin (DOGE) has maintained a pattern of indecision with regards to the price above $0.10 as depicted in the ongoing challenges of having a price above the same. Over the last few weeks, there has been an interesting contradiction where huge whale transactions did not result in anticipated bullish price action which raises curious questions regarding the fundamentals underlying this situation.
Whale activity on Dogecoin has skyrocketed, with such large holder transactions experiencing an 868% surge in net flow. In various days ranging from July 9 to July 11, the volumes moved by these major holders peaked at around 364.38 million coins; their previous outflows demonstrate a stark contrast with this huge accumulation. This massive accumulation is often considered a strong bullish sign among major players in the DOGE market; However, it does not translate into expected upward price movement and adds complications for market interpretation.
Broad market sentiment or macroeconomic factors can explain why there seems to be no correlation between whale activities and prices. There was falling open interest for Dogecoin futures that reached all-time lows near $2.51 billion since late January indicating less enthusiasm and speculative trading on markets due to a decrease in open interest across all exchanges which means a lesser number of people who are interested in taking up large positions anymore.