Dogecoin (DOGE) has broken through a major resistance at $0.111 with over 62k addresses holding above 36 billion DOGE in their wallets. In a recent X post, Ali has pointed out that if this level is maintained, Dogecoin could be on the cusp of a bullish breakout which may present a target of $0.150. With no major supply barriers in the near future, the way up seems brighter and brighter for the popular meme cryptocurrency.
Among the factors that contributed to the positive sentiment concerning token is the increase in whale movement. Whales have been on the move, and in the last 24 hours, large transactions went up by 63% with approximately 65.41 billion DOGE being moved around.
DOGE Whale Influence Grows
These whales hold 41% of the whole Dogecoin community hence they are capable of making substantial fluctuations in the market. Previously, such a high level of activity of whales is usually followed by significant price changes which may indicate new fluctuations in the market.
Source: IntoTheBlock
Larger volume position of the whales might imply that the market change may be near as these big market participants usually enter before a significant change in price. These investors then initiate similar actions in the market, which can result in further price changes in the cryptocurrency.
In the same way, there has been active whale activity, and social volume has also picked up in Dogecoin meaning that more and more people are taking interest in this digital asset. Social volume captures the number of times that people are talking about coin on social media.
Source: Santiment
DOGE Social Engagement
These conversations have picked up over the last three days, which indicate that there is increasing engagement from other parts of the market. Higher social volume definitely brings in new buyers and in turn, the demand for the asset increases.
However, there are still some concerns, though the signals are more bullish. A key indicator used for identifying market momentum is the stochastic RSI and it has recently broken below a bearish crossover.
This implies that before any significant price rise Dogecoin would undergo some short term volatility corrections. These corrections are usually seen in crypto markets before the resume of the previous trend.
Despite the increased whale activity and rising social engagement, the bearish crossover suggests that the market may still experience minor corrections. People should not be worried by the short-term fluctuations, but should expect the values to rise in the near future.
