Dogecoin Hits 1% Market Dominance: Are Investors Ready for More?

Breaking: Dogecoin Faces $0.3672 Stagnation Amid $1 Speculation

Dogecoin has delivered an impressive rally since mid-October, climbing in market dominance and following Bitcoin’s recent performance. This memecoin, often seen as the “king” of its category, now holds a dominance level above 1%—a first since May. In mid-October, Dogecoin’s dominance hovered at a low 0.74%, but strong bullish momentum pushed it up to 1.04%. This rally reaffirms Dogecoin’s relevance in the memecoin market, thanks in large part to renewed whale interest.

On Tuesday, Dogecoin’s value peaked at $0.179, a level not reached since April. This recent surge saw Dogecoin increase by 74% from October’s low to its highest price so far and by 62% to reach $0.168 as of the latest figures.

Signs of a Potential Cooldown Emerge

DOGE RSI Chart. Source| TradingView

Despite the positive rally, signals suggest a possible cooldown for Dogecoin. Dogecoin reached a historic resistance zone during its latest peak, prompting a minor pullback within the past 24 hours. Additionally, after this rally, Dogecoin appears overbought, raising the likelihood of profit-taking among investors. However, downside risk seems limited, which indicates that investors may expect another bullish push.

Whales Accumulate Dogecoin, Signaling Strong Demand

Dogecoin
Source| IntoTheBlock

On-chain data confirms that whales actively accumulated Dogecoin during this latest rally. For instance, inflows to large holder accounts skyrocketed from 79.55 million DOGE to 1.36 billion DOGE by October 29. Outflows also rose, from 74.42 million DOGE to 782.45 million DOGE, emphasizing that whale buying volume exceeded selling pressure.

Shifting Exchange Flows and Potential Sell Pressure

Dogecoin
Source| IntoTheBlock

Recent exchange flows reveal a possible shift in demand. As of now, exchange inflows have surpassed 833 million DOGE, while outflows are lower at 597 million DOGE. Higher inflows than outflows may indicate increasing sell pressure due to profit-taking. This trend highlights a possible short-term sell-off as the weekend approaches.

Despite signals for a pullback, optimism among Dogecoin investors remains high. Some investors might choose to hold onto their gains, expecting prices to climb further in the coming months. This sentiment could limit the potential downside and encourage a consolidation period before the next rally. If optimism continues, Dogecoin could attract even more bullish momentum.

Read Also: Dogecoin Soars 14% as Elon Musk Hints at New Moves: Is $0.20 Next?

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Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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