Dogecoin has recently gained attention in the cryptocurrency market after successfully breaking through local resistance levels. Traders have built up $22.64 million in Long Liquidation Leverage, primarily between the price points of $0.1876 and $0.1984. To gain momentum for a potential 25% rally towards $0.25, it is crucial for DOGE to maintain a daily closing price above $0.1985. Despite the bullish momentum, a significant transfer of 155 million DOGE to Robinhood by an unidentified whale has created some caution among traders.
Although this transfer does not directly indicate a sell-off, its timing raises concerns about possible exit liquidity plays. In the cryptocurrency world, such movements often suggest an intent to sell, which can diminish bullish confidence unless offset by strong retail or derivative market activity. However, a deeper analysis of trader behavior shows that many are still opting for bullish positions, according to CoinGlass data. The Long Liquidation Leverage significantly outstrips the Short Liquidation Leverage, suggesting a pro-bullish sentiment.
Most leveraged positions exist within the critical range of $0.1876 to $0.1984, potentially acting as a trigger point for a short squeeze that could further elevate prices. Moreover, over the past 24 hours, exchanges witnessed a notable outflow of $6.32 million worth of DOGE, hinting at a bullish accumulation trend. As of now, Dogecoin trades around $0.195, having seen a 6.5% increase in the last day, coupled with a 65% rise in trading volume. Following a breakout from a descending trendline, DOGE’s price is showing potential for substantial gains, with the next crucial test being holding above the $0.1985 level.
If successful, this could pave the way for a significant surge towards $0.25.