Dogecoin (DOGE), the meme-inspired cryptocurrency with a loyal following, has been riding a wave of optimism lately. Over the past week, its price has risen by almost 8%, much to the delight of investors. However, the recent move by a major DOGE holder has cast uncertainty over the future price trajectory of this interesting puppy.
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Dogecoin fueled by market bulls and short squeeze
The broader crypto market Sentiment was bullish Recently, DOGE has been wagging his tail happily. Last week saw a huge price increase, and it looks like the good times are rolling in with a 3% jump in the last 24 hours alone.
This pushed the price of DOGE to an exhilarating level of $0.152, bringing a smile back to the faces of many investors who were eagerly awaiting the continued rise.
The celebration was not limited to the spot market only. The derivatives market also witnessed a noticeable increase in activity Dogecoin futures have open interest Jump by a healthy 9%.
This indicates renewed interest from traders, especially those looking to profit from potential price movements through futures contracts.
To make matters worse, short sellers have been feeling the heat lately. According to Coinglass, they faced liquidations totaling a staggering $2.27 million.
This could trigger a short squeeze, a scenario where short sellers are forced to buy back DOGE to cover their positions, further pushing the price higher. However, this positive development hinges on whether it can overcome potential selling pressure arising from the recent whale movement.
Pisces Alert: Big transfer raises speculation
Just as things were looking bright for DOGE, a transaction involving a whale sent waves of concern through the Dogecoin community. Data from Whale Alert It revealed that a whopping 200 million DOGE, worth around $30.86 million, had been transferred to the Robinhood trading platform.
The huge move has raised eyebrows, with many suspecting that Pisces may be preparing to cash out a significant portion of their estate. A significant sell-off could lead to significant selling pressure, which could derail DOGE's current bullish momentum.
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Technical analysis: broken trends and possible pullbacks
Glancing under the cover from a technical point of view, it appears that DOGE is trying to break its daily downtrend. This is a positive signal for the bulls, indicating a potential shift in market sentiment. Further analysis reveals that DOGE has recently entered a demand block, which has contributed to the ongoing increase in its price.
Featured image from War History Online, chart from TradingView
