Dogecoin (DOGE) was trading at $0.1679 with an increase of 6.12% per the writing time. The meme coin is approaching its resistance level at $0.1756.
Technical indicators are also showing bullish moves, with the Relative Strength Index (RSI) nearing overbought levels. In a different development, a transfer of almost $169 from Binance to an unknown wallet was flagged as the majority suggest it may impact DOGE market.
Whale Activity and Reduced Selling Pressure
Whale Alert detector has shared a post on X notifying users about the transfer of around 999,999,999 DOGE (roughly $169.2 million) from Binance to an unknown wallet.
Whales moving their assets off exchanges is a good indicator that they don’t intend to sell in the short term. Furthermore, this transfer could be a bullish signal as it cuts circulating supply on the exchange, potentially making Dogecoin more attractive to long-term holders.
Dogecoin’s Price Trends and Key Support Levels
Dogecoin’s recent surge has seen it near the upper Bollinger Band at $0.1756, a high resistance level. On the other hand, if DOGE is unable to break through this resistance, it may trade lower.
Immediate support is found around the middle Bollinger Band (20-day SMA) at approximately $0.1497. A further pullback could find support at the lower Bollinger Band, set at $0.1239.
Dogecoin’s RSI currently sits at 65.67, indicating strong bullish momentum, but it is nearing the overbought level of 70. If the RSI crosses above 70, it could signal an overbought condition, increasing the likelihood of a pullback.
On the other hand, if the RSI stabilizes just below 70, Dogecoin will likely continue to move up should demand remain high. According to analyst D_DTRADING, Dogecoin has “great strength” as it keeps respecting demand zones for a long time, suggesting an upward trend.
The analyst also attributes Dogecoin’s bullish performance to the outcome of the ongoing US election. He wrote,
“I expect Dogecoin to be tied to Trump winning, so if Trump wins, I expect a very strong candle upwards.”
Growing Network Activity Supports Bullish Sentiment
Dogecoin’s network activity has been on the rise, with more than 35,000 new addresses created each day. These rising active addresses show increasing adoption and thereby bring fundamental strength to Dogecoin’s price surge.
The more users onboard the network, the more potential DOGE has for liquidity and market stability, and is likely to carry on its bullish trend.
