Dogecoin (DOGE) is showing signs of a strong bullish reversal, with its price action indicating significant upside potential. On-chain metrics revealed that exchanges recorded outflows worth $10.90 million, potentially hinting at accumulation by whales and investors amid the price dip.
Traders appeared to be over-leveraged, with $27.47 million worth of long positions built at $0.1776, a key level where traders seemed heavily invested. The memecoin’s price hike of 1.35% over the last 24 hours has fueled its recovery, with DOGE’s trading volume climbing by over 15%.
According to AMBCrypto’s chart analysis, DOGE could soon be poised for significant upside on the charts. If the memecoin successfully breaks out of a recent trendline and closes above $0.19, there is a strong possibility of a massive 32% upside move.
However, if DOGE fails to sustain itself above this level, the consolidation may continue further. Worth noting, though, that DOGE’s 200-day Exponential Moving Average (EMA) on the four-hour timeframe has been trading above its price, indicating it may have been on a short-term downtrend.
The memecoin has seen rising participation from investors and traders after a prolonged downtrend, with some taking long positions and others accumulating tokens. This suggests that bulls have been dominant lately, potentially alluding to potential upside in the near term.
Source: https://ambcrypto.com/dogecoins-price-could-rally-by-32-but-heres-the-catch