Recent on-chain metrics suggest that Dogecoin (DOGE) is showing signs of potential bullish momentum. According to the Global In/Out of the Money indicator, there are minimal large selling clusters in the near future, which could pave the way for a rapid upward movement. The indicator highlights a significant observation: approximately 73% of Dogecoin addresses are currently in profit. This high percentage indicates a strong position for holders, reducing the likelihood of selling pressure from those facing losses. Conversely, only about 24% of addresses are out of the money, suggesting limited immediate selling pressure.
Increased Transaction Volume and Institutional Interest
In the last 24 hours, there has been a notable increase in the movement of Dogecoin, totaling 11.4 billion DOGE. Such a surge in transaction volume often indicates heightened activity among institutional investors or whales.
Related article: Dogecoin Whales Signal Bearish Sentiment: What’s Next?
These large-scale transactions by institutional players typically precede significant price movements. Analysts foresee Dogecoin potentially rallying towards the $0.17 price level, where stronger resistance and possible consolidation could occur.
DOGE/USDT Chart Source: TradingView
Traders should remain vigilant around this threshold, as it could either propel DOGE further or trigger a pullback depending on market dynamics.
Institutional Investors’ Influence
The involvement of institutional investors suggests a strategic buildup possibly anticipating future price increases. Their substantial market influence makes their actions crucial in forecasting potential price swings.
Related article: Will Dogecoin Break Through to $0.12? Key Levels to Watch This Week!
With a majority of Dogecoin addresses currently in profit and minimal selling pressure from those at a loss, the outlook for DOGE appears promising in the short term. However, the $0.17 price level presents a critical juncture where market reactions could dictate the next phase of price action—whether a sustained rally, consolidation, or a temporary pullback.
Investors and traders alike should closely monitor these developments to navigate potential opportunities and risks in the Dogecoin market.
