Dogecoin (DOGE), the meme-inspired cryptocurrency with a loyal following, has been riding a wave of optimism lately. Over the past week, its price surged by nearly 8%, much to the delight of investors. However, a recent move by a large DOGE holder has cast a shadow of uncertainty on the future of this playful pup’s price trajectory.
Dogecoin Fueled By Market Bulls And Short Squeeze
The broader crypto market sentiment has been bullish recently, and DOGE has been happily wagging its tail along. The past week saw a significant price increase, and the good times seemed to be rolling with a 3% jump in the last 24 hours alone.
This pushed DOGE’s price to a cheerful $0.152, bringing smiles back to the faces of many investors who have been patiently waiting for a sustained climb.
The party wasn’t just limited to the spot market. The derivatives market also saw a notable rise in activity, with Dogecoin Futures open interest jumping a healthy 9%.
This suggests a renewed interest from traders, particularly those looking to capitalize on potential price movements through futures contracts.
Adding fuel to the fire, short sellers have been feeling the heat lately. According to Coinglass, they’ve faced liquidations totaling a staggering $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 further push the price upwards. However, this positive development hinges on whether it can overpower the potential selling pressure arising from a recent whale movement.
Whale Alert: Big Transfer Sparks Speculation
Just as things were looking bright for DOGE, a transaction involving a whale sent ripples of concern through the Dogecoin community. Data from Whale Alert revealed that a whopping 200 million DOGE, valued at around $30.86 million, was transferred to the trading platform Robinhood.
This hefty move has raised eyebrows, with many suspecting the whale might be preparing to cash out a significant portion of their holdings. A large sell-off could introduce significant selling pressure, potentially derailing DOGE’s current upward momentum.
Related Reading: Filecoin On Fire: Analyst Torches Doubters With $15 Target
Technical Analysis: Breaking Trends And Potential Pullbacks
Taking a peek under the hood from a technical standpoint, DOGE appears to be attempting to break its daily downtrend. This is a positive sign for bulls, indicating a potential shift in market sentiment. Further analysis reveals that DOGE recently entered an order block, which has been contributing to its ongoing price increase.
Featured image from War History Online, chart from TradingView
